Financial Journal

p. 8-27

Authors: Marina Yu. Malkina, Igor A. Moiseev

The article deals with the endogeneity of money supply in the Russian economy in the context of the changes made to the rules of monetary regulation. We summarized and analyzed the basic concepts of the modern theory of endogenous money, and described the approaches of various researchers to studying the impact of financial innovations and changes in the principles of monetary regulation on money supply endogeneity. In the empirical part of the research, in order to test the hypothesis on the endogenous origin of the money supply in the Russian economy in 2010–2018, we applied the Granger causality test and the Johansen cointegration test as well as VAR and VECM models. The study was based on the monthly data for the monetary sphere (M2 monetary aggregate, monetary base, and money multiplier), the banking sphere (loans, deposits, and interest rate) and the transactional sector of the economy (wholesale and retail turnover). We split the time series into two intervals: 2010–2013 and 2014–2018, because the monetary regime was being changed significantly throughout 2013–2014. As a result, the hypothesis of money supply endogeneity has not been rejected for both periods of time, and evidence of structuralism has been revealed. In the short term of 2010–2013, it was mainly commercial banks that reacted to an increase in money demand (through money multiplier); however, in the long run the Central Bank of Russia prevailed (through changing the monetary base). Nevertheless, in 2014–2018 the Bank of Russia demonstrated an efficient adjustment of money supply toward money demand, which had been reflected in the response of the monetary base in the short term. Meanwhile, in this period the role of commercial banks in lending was increased through operational managing of their own resources, which was reflected in the reaction of the money multiplier to the growth of business activity in the country. These changes indicated an amplification of money supply endogeneity in the Russian economy. In addition to passive adaptation, we revealed a particular activism in the monetary sphere, when the initiative of money emission came not so much from the monetary authorities as from commercial banks fighting for a market share in the face of intensified banking competition and reduced bank margins.

p. 48-59

Authors: Irina V. Kiviko, Nina I. Malis

The entry of the Republic of Crimea into the Russian Federation created problems of the republic’s adaptation to the budget and tax legislation of Russia. Most of these problems have already been resolved, but a number of questions still remain. The application of the Russian tax legislation in Crimea initially led to a fall in the regional budget’s own revenues, but gradually the situation began to improve. In order to develop business in the territory of the Republic of Crimea, it was necessary to apply a flexible tax mechanism, including the creation of a free economic zone and varying tax rates for special tax regimes, and this task is being consistently solved. The main objective of the present time is to reduce the shadow economy through tax administration as well as to introduce a tax on professional income and a mechanism for registering real estate. The proposed abolition of the single imputed income tax, making up a substantial income for local authorities, cannot be offset by a patent tax form or other sources. It is necessary to change the budget legislation on the distribution of tax revenues between local budgets according to both basic taxes and special tax regimes—even in the face of increased personal income tax revenues as a result of growth in the tax base and the inclusion of separate divisions in regional taxpayers.

p. 76-90

Authors: Denis V. Bryzgalov, Julia V. Gryzenkova, Alexander A. Tsyganov

Subject matter. Insurance and insurance activities in the digital economy. Topic. The relevance of the topic is due to the need to determine the specifics of insurance in the digital economy as well as to conduct a study to assess the practical application of new digital technologies in the Russian insurance market. In the existing works by Russian and foreign authors, the problems of practical use of digitalization processes by Russian insurers have not been systematically considered. Goal. Theoretical justification for changes in the insurance category in the context of economy digitalization and the study of practical implementation of digital technologies in the Russian insurance market. Method. The paper considers the results of a market study of 30 leading Russian insurers on the digitalization of the insurance market, aimed at identifying the problems and prospects of this process in Russia. Results. The theoretical definition of digital insurance is given, and its duality in the digital economy is shown, associated with the insurance of specific digital risks and with the introduction of new digital technologies (digitalization). Digitalization indicators of insurance activities have been developed and calculated—in particular, the indicator of the use and penetration of digital technologies. The results of a study on the demand for new digital technologies for business processes among insurance companies are reviewed and explained. Digital risks are classified, and the features of the implementation of cyber risks as well as the risks of artificial intelligence and the Internet of things are shown. The prospects for the use of digital technologies by insurers in the near future are estimated. Scope. The results of the study can be used by insurance companies to assess the competitive environment in terms of the use of digital technologies and in the strategic planning process, as well as by government bodies to assess the state of affairs and prospects of the insurance market's participation in digital economy formation.

p. 102-113

Authors: Sergey A. Perekhod

The article is devoted to the study of the risks of external corporate debt and instruments for leveling current shocks (sanctions, global recession due to the COVID-19 pandemic and low oil prices) for macroeconomic stability. A detailed decomposition has been carried out, and an analysis of probable vulnerabilities has been performed; a conclusion is drawn about the most important aspects, namely the redistribution of obligations on public finances. Based on a sample of debt dynamics for 2006–2019 (56 observations), a more active increase in borrowing by state-owned companies is revealed (compared with the private sector), and the concept of “state support option” is introduced. The definition of financial stability in the context of debt sustainability is clarified. The strategy is based on issues related to threats to countries. The micro- and macroprudential approaches are compared with the features of their application in an open economy.