Authors:

Mikhail V. ERSHOV Dr. Sc. (Econ.), Professor, Director of Financial Research of the Institute for Energy and Finance

Abstract:

The paper analyses the risks of the global financial system and concludes that worsening sustainability in financial markets can impede the growth of the leading economies. Excesses in the global stock market are among the core risk factors. The analysis of the situation in Russia conducted in the paper reveals that interest rates are quite high, which hampers economic growth. The policy of monetary regulators is still based on external sources of funding the economy. Against a background of global unrest and more sanctions against Russia coming, such an approach can retard the development of the Russian economy even further. In this regard, the author justifies the relevance of using the money creation mechanism on the basis of national growth priorities and internal sources of its funding.

Keywords: FINANCIAL CRISIS, STOCK MARKET, INTEREST RATE, MONETARY BASE, MONEY CREATION

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