Modeling the coherence of the financial system and economy of Russia

Valery V Smirnov,Sergey B Zimin,Alena V Mulendeeva,Anna N Zakharova,Vladislav L Semenov,O Popova

doi:10.1051/shsconf/202110102007

Abstract

The article assesses the coherence of the financial system and economy of Russia, and also reveals the uncertainties in interrelation between the flow of finance and economic activity. The work reveals the possibilities of ensuring preservation of the form and content of economic system in the process of creating and using monetary funds. An analysis of the actual change of pace in the growth rate of finances and economic activity was carried out to eliminate the uncertainty of interrelation between the flow of finance and economic activity. In the result of the analysis, it was revealed that financial and economic measures are resorted to in order to eliminate uncertainty, and thereby, to ensure the preservation of coherence of the financial system of the modern Russian economy. Financial measures include an increase in gold reserves and monetary base; economic measures include an increase in the production of crude oil and natural gas and petroleum (associated) gas, extraction and dressing of iron ores. As a result of modeling the dynamics of the financial and economic systems with application of the modified Cobb-Douglas formula it is revealed that the financial system actively follows the dynamics of the economic system and there is sufficient compensating reaction of the former.Coherence of the Russian financial system and economy determines the capability and ability to maintain the form and content of the Russian economy with the help of finance. Elimination of the uncertainty of interrelation between the flow of finance and economic activity is confirmed by active following of the Russian financial system in path of the economic system dynamics and compensating reaction of the financial system.

Highlights

Relevance of the study of the financial system coherence in modern Russian economy is associated with the increasing global uncertainty of the finances role in stabilizing the world economy growth rates and eliminating crisis manifestations
Financial measures include an increase in gold reserves and monetary base; economic measures include an increase in the production of crude oil and natural gas and petroleum gas, extraction and dressing of iron ores
The explanation is based on the real change in the growth rate of finance (The United Nations Statistics Division) and economic activity (OKVED 2, the Russian National Classifier of Types of Economic Activity) (Federal State Statistics Service)

Summary

Introduction

Relevance of the study of the financial system coherence in modern Russian economy is associated with the increasing global uncertainty of the finances role in stabilizing the world economy growth rates and eliminating crisis manifestations. In the current world economic activity, doubt is thrown upon the essence of finance as a set of economic relations in the process of creating and using monetary funds applied to ensure preservation of the economic system structure. Study of the process of economic system structure preservation as a way to maintain the form and content of the Russian economy with the help of finance acquires status of a world problem. The issue of the coherence of the financial system with the economic one is related to the financial management effectiveness that is to maintain the form and content of the complex of economic relations in the process of creation and application of monetary funds for the structure preservation, support of the mode of activity, implementation of the program and achievement of the economic system goals

Methods

Results

Conclusion