Anti-crisis Regulation of Monetary Circulation in Russia

Abstract

The article studies the factors determining monetary circulation in Russia and the actual problems of its anti-crisis regulation in the country’s economic system. The authors of the article focus on the dynamics of the key rate as one of the main factors affecting cash flows in Russia, ensuring the implementation of the main functions of money when they move through the rates set by credit institutions on deposit products. In the study, within the framework of cash flow management in the commercial banking sector in the Russian Federation, special attention is paid to the problems of falling real incomes of the Russian population and worsening expectations of the population regarding changes in the economic situation in the country. The authors analyze the main reasons for the negative dynamics of real incomes, the problems of insufficient growth rates of the Russian economy to reduce poverty and improve the quality of life of the Russian population to target levels. As statistical examples, the authors provide data on the dynamics of the main macroeconomic parameters of the functioning of the economic system: economic growth rates (gross domestic product), inflation rates, the central bank’s key rate, real incomes of the population and its economic sentiment. In the anti-crisis regulation of monetary circulation in Russia, the authors propose to combine two interrelated directions: short-term anti-crisis tactics to stimulate aggregate demand and long-term strategic regulation of economic growth (aggregate supply). According to the authors, in order to implement a favorable scenario for the development of the economy of modern Russia, it is necessary: to increase the money supply, stimulate economic growth and consumer demand of the population (i.e. to make payments, subsidies at the expense of budgetary funds, at the expense of accumulated funds of the National Welfare Fund to the population). Acceptable terms and interest rates on loans for business are needed to increase its business, investment and innovation credit activity in connection with the unfavorable situation due to the coronavirus pandemic and to practice state control over pricing in the sphere of natural monopolies and oligopolies that affect the cost of production. Also, it is essential to provide effective state support for small and medium-sized businesses (SMEs) at the federal and regional levels and reduce the tax burden for businesses.

Keywords

• anti-crisis regulation
• monetary circulation
• cash flow
• key rate
• central bank
• gross domestic product
• economic growth rates
• inflation rate
• aggregate demand
• aggregate supply