The impact of economic policy instruments on the conditions of sustainable economic growth

Abstract

Given the low rates of economic growth in Russia and the aggravation of the geopolitical situation, the question of the prospects for its stimulation with fiscal and monetary policy tools is of particular relevance. The main priority of the economic policy is to ensure financial stability and prevent destabilization, taking into account the volatility of hydrocarbons prices and the geopolitical tensions. The article uses dialectical materialistic and concrete historical methods to protect that the current economic policies should be focused on sustainable economic growth. It is necessary to form a new strategy of monetary regulation and budget policy that would contribute to the sustainable development of the Russian economy and ensure the economic security of the country. In the perspective of maintaining sustainable economic growth, it is important to solve the problem of equitable distribution, expressed in a strong stratification of society and the violation of social stability, the implementation of economic policy at the level of macroeconomic planning; it is advisable for the Central Bank to follow the link between the possible range of inflation and economic growth; to stimulate consumer and investment demand by reducing interest rates, to form money supply not due to linking gold and foreign currency reserves, but under the issue of securities, to increase budget expenditures and increase public debt for the sake of investment in education and health care.

Monetization of the Economies as a Priority of the New Monetary Policy in the Face of Economic Sanctions

“…In Russia, at the time of the introduction of inflation targeting, the relative amount of bank debt of non-financial corporations and the population was 55% of GDP. This was slightly inferior to its average level at the time of the introduction of this regime by other countries-59.4% (Altunyan et al 2020). However, given that the main group of countries switched to inflation targeting of the 2008-2009 world financial crisis, and developed countries even earlier-in the 1990s, the lag has now grown (Kitrar 2021).…”

Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015

“…30 Net public wealth used to be positive and substantial in all Western countries in 1978; the government owned between 15 percent and 25 percent of national wealth in the United States, Japan, France, Germany, and Britain in the mid-1970s. This mixed economy regime resulted from a combination of low public debt (following post-World War II debt restructuring and inflation) and a large public sector, including in some cases government ownership of large companies in banking and 30 We present two alternative series on the public share in China's national wealth, depending on what fraction of agricultural land is assigned to the government and the private sector (see the discussion in Section IA). This makes a significant difference at the beginning of the period (given the importance of agricultural land in 1978), but has relatively little effect in 2015 (see online Appendix Figure A2).…”

The impact of monetary policy instruments on sustainable development

“…In reality, this relationship is related to long-term financial development. (Altunyan et al, 2020) investigated the effect of economic policy instruments on the growth conditions of sustainable development in Russia. They suggested that in order to achieve sustainable development and create social sustainability, the problem of equitable distribution should be solved through the application of financial policies.…”