Economic System Of Country Research Articles

АНАЛИЗ СОСТОЯНИЯ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ АВТОТРАНСПОРТНОЙ СИСТЕМЫ РЕГИОНА

An important role in ensuring economic security is played by the development of the regional road transport system both in terms of the completeness of the geographical coverage of the territory of the region and the country by roads, as well as in terms of the technical and technological level of development of certain types of transportation, the harmony of their interaction, compliance with the development of the productive forces of the state. It is necessary to integrate into the world economic space, increase the degree of openness of the country's economic system, consider not only the principled position of the national transport system and its role in integration processes, but also aspects of ensuring its economic security. The article analyzes the state of economic security of the road transport system of the Sughd region of the Republic of Tajikistan, determines its position in a market economy, identifies the main factors affecting the degree of loading of the road transport infrastructure with transit cargo flows. The dynamics of changes in the specific weight of performing transport work by various types of transport is given. It is noted that the contradictions of economic interests not only create prerequisites for the emergence of threats to the vital economic interests of road transport business entities at the regional level, but also the peculiarities of the formation of a management system in this area. Accordingly, a system of subjects and objects of management should be created, a set of methods of managerial influence should be determined. The level of economic security of the region's road transport system depends on internal and external factors, the impact of which is determined through analysis and identification, a kind of monitoring of the state.

МИГРАЦИОННЫЕ УСТАНОВКИ НАСЕЛЕНИЯ ЛИТВЫ ВО ВРЕМЯ ПАНДЕМИИ COVID-19

The article analyzes some results of the international migration of the Lithuanian population in the context of European integration. During the post-Soviet period, irreversible transformations of the country's economic system have taken place. With the accession to the EU, a significant part of the population is oriented towards work in other EU countries, as a result, the quality of labor potential in modern Lithuania is decreasing. Young people do not see any special career prospects in their country. The slowdown in European integration processes, compounded by the restrictions of the coronavirus pandemic, triggered the return of a significant part of previously emigrated Lithuanian citizens to their homeland in 2020. Stopping the flow of money from EU funds to reform the economy and support public institutions in Lithuania will significantly exacerbate the systemic problems of the Lithuanian economy that accumulated during the post-Soviet period of development. It is highly likely that returning Lithuanians will not be able to fulfill their expectations in the labor and social sphere, which will provoke tension in Lithuanian society. In this situation, Russia's constructive policy towards Lithuania could create an alternative to the European vector of development, reorienting the migration preferences of the younger generation of Lithuanians from the West to the East.

Sustainable Energy as a Tool to Reduce the Risk of the Quality of Life Decrease

At present, sustainable energy based on new technologies and dissipative structures is considered as the main tool for combating climate change and reducing anthropogenic impact on the environment. At the same time, the development of dynamic energy that creates flexible and adaptive economic and energy systems is going to become the main factor to reduce negative impact of energy insecurity on the quality of life of the population. This article analyzes the mechanism of propagation of the negative impulse arising from the implementation of threats to energy security, which, passing from element to element of the country's economic system, including energy system, leads to a decrease in the quality of life of the population. Within the framework of the economic system, there is either attenuation or strengthening of the negative initial impulse triggered by the implementation of a particular threat to energy security. In the course of the study, we identified the factors that amplify the negative effect of the passage of an impulse in different segments of the national economy, as well as factors associated with the development of sustainable energy, which contribute to the attenuation of the negative impulse and ensure an increase in the quality of life of the population.

The Effect of Human Capital on the Output of Slovak Urban Regions

Cities play a key role in the creation of the national product. Most of the population is located in cities, which leads to intensive economic activity. At present, two main topics are being discussed in the academic environment. One focuses on the importance of different size categories of cities in the economic system of countries. The second focuses on the importance of individual production factors in the creation of economic output of cities. This article deals with measuring the effects of production factors on the economic output of urban regions (also referred in this article as cities) in Slovakia. The analysis of 78 urban regions of Slovakia showed that the human capital factor has the largest effect on the production of their total output. Results from the subsequent analysis on the comparison of the impact of production factors between different size categories of urban regions largely confirmed the main result. However, the measured effects of individual production factors for different size categories of urban regions brought interesting differences.

Can Zero-Coupon Bond Yield Curve Predict Economic Growth? – The Case of China

Since China's economic reform in 1978, the country's economic system has foreseen rapid evolvements, particularly in issuing debt securities by the Chinese central government to financing its drastic economic growth (Loo & Lqbal, 2019). This research study examines the zero-coupon bond yield curve's predictive power on China's GDP growth rate by adopting the Nelson-Siegel (1987) dynamic yield curve model. This research study adopts various approaches to refining the Nelson-Siegel (1987) model to enhance its predictive power on future economic activities, drawing upon the modifications undertaken by Diebold & Li's (2006) study to examining the constructed yield curve in accordance with the three latent factors of level, slope and curvature of the entire yield curve. A 67 period of zero-coupon bond yields is gathered between Q3 2002 and Q1 2019 quarterly from zero-coupon bond maturities of 1, 3, 5, 10, 20, and 30 years, finding that all types of zero-coupon bond maturities to exhibit similar yield curve movements across short, intermediary and long term durations. A multiple regression model was used to examine the correlation coefficient between the three latent factors and China's GDP, finding a significant relationship in the slope factor. A relationship was also found between the level and slope factors with a significance of 0.854, whereby the average rates between the two variables were calculated under the augmented Dicky Fuller test to ensure all factors are at stationary states to enhance the accuracy of future testing. The researcher also performed a least-squares equation (OLS) test to addressing the identified multicollinearity problem aforementioned, finding the R-squared value of 29.6%. Which suggested the level and curvature factors of the constructed yield curve would accurately explain 29.6% of China's GDP growth rates. To further examine the predictive power of the constructed yield curve in accordance to Nelson-Siegel's (1987) dynamic model, an out-of-sample forecasting method is employed with the out-of-sample size of 40 periods between Q3 2002 and Q2 2012 against 27 periods between Q3 and Q1 2019. The out-of-sample regression test founded an R squared value of 11.4,% suggesting that in sample forecasts contained higher predictive power to China's GDP growth based on the constructed yield curve. Furthermore, the out-of-sample forecast results show no significant relationship between the level and curvature factors, further reaffirming the argument that the yield curve in sample forecasts would better predict future economic activities. The research findings were consistent with findings from other studies conducted by Diebold & Li (2006); Hvozdenska (2015), and Campbell & Thompson (2008), whereby the spread of the yield curve constructed by the Nelson-Siegel (1987) dynamic model showed a strong relationship between China's GDP growth and the produced yield curve, representing strong predictive power and offers valuable insights to addressing the identified research gap where minimal research studies have explored the predictive power of China's zero-coupon bond yields in relation to the macroeconomic outlook. Keywords: Nelson-Siegel model, Yield curve, Zero-coupon bond, Maturity, Regression, Dynamic model. DOI: 10.7176/JEP/11-24-02 Publication date: December 31 st 2020

Developing the methodology of early diagnosis of financial crises using a system of signaling economic indicators

Subject. This article discusses new possibilities for diagnosing the state of the country's financial and economic system and monitoring the true signs of crisis phenomena. Objectives. The article aims to develop effective methods of diagnosing and predicting financial crises in Russia using a special system of economic indicators and digital analytical tools. Methods. For the study, we used the signaling approach, non-parametric and mathematical statistics, and econometric modeling. Results. The article proposes a developed methodology for diagnosing crisis events, and tested on the basis of a sample of official data of the Federal State Statistics Service, the Ministry of Finance of the Russian Federation, the Central Bank of the Russian Federation, and the exchange information of the world financial markets for 1998–2019. Conclusions. The study confirmed the prospects for using a signaling approach in combination with the binary choice model and econometric modeling methods to predict the onset of crisis events in the Russian economy. The proposed methodology for diagnosing financial market crises contributes to the development of scientific approaches to the analysis and forecasting of the price dynamics of financial markets and periods of their increased volatility. Its practical implementation provides information on emerging trends in financial and economic instability and assesses the likelihood of a financial crisis.

Statistics on Differences in the Institutional Composition of the National Economy and Issues Related to its Harmonization

This article focuses on the assessment of the size of the public sector, which goes back to the assessment of the degree of state participation in the domestic economy and remains controversial. Such assessments are often carried out without the presentation of threshold criteria and without evaluation of its effectiveness and combination with other institutional sectors. At the same time, it is obvious that the ratio between the public and other (non-state) sectors refers to the issue of strategic importance, to the issue of the effectiveness of the country's economic system in its integrity, and therefore requires theoretical, methodological and practical resolution.The objectives of the research are: (1) to determine the relative scale and efficiency of the public sector functioning in the national economy, to establish minimum necessary and maximum possible values of its scale; (2) to determine the size and establish a measure of harmonious combination of institutional components of the domestic economy aimed at maximizing its efficiency.Materials and methods. Theoretical foundations of the research have been developed on the basis of the authors' preferences regarding the results of conceptual and applied developments of domestic scientists in the field of philosophy, mathematics, economics and sociology, as well as the practice of structural and spectral analysis in their subject areas. The analysis of parameters (indicators) of the state and other institutional sectors of the national economy was carried out (mainly) on the basis of statistical data of ROSSTAT for 2006-2016, materials of official reports and developments of analytical centers. The methodological basis of the research is formed by works on modular theory of society, public sector economy, and structural harmony of systems. Tabular methods of visualization of research results and statistical methods of source data processing were used. Standard packages of Microsoft Office application programs were used for solving research tasks.Results. It is shown that against the background of a decrease in relative resource capacity, the public sector over the period under review does not show an increase in the degree of government participation in the Russian economy. At the same time, performance indicators of the public sector did not show not only worse, but also worsening values, both as compared with the private sector and the economy as a whole. Criteria of minimum required and maximum possible scale of the public sector have been defined and it is shown that as of 2016 the integral indicator of the scale of the public sector of the Russian economy does not reach the minimum required value. A quantitative model for optimizing the sectoral composition of the national economy has been constructed. System solutions are proposed and a method for determining the share of institutional sectors in the structure of the national economy is given.Conclusion. The article deals with the issues of state participation in the economy, defines the scale and efficiency of the public sector in the national economy. It is noted that within the limits of maximally liberal and maximally ethical ideological statements the task of optimization of neither the size of the public sector of the national economy nor the harmonious combination of its sectoral composition find a satisfactory solution. The analysis of institutional composition of the national economy has been carried out and the way of optimization of its structure has been shown, the direction of the state economic policy on optimization of institutional structure of the national economy has been determined. Orientation of economic policy towards achievement of optimal structure (harmony) of economic system (as well as the very movement towards it) will create conditions not only for increase of its efficiency, but also will allow to satisfy economic needs of socially-professional groups to the fullest extent, and society as a whole will successfully develop.

Методические подходы к оценке влияния импортозамещения на экономический рост

Import substitution provide multidirectional impact on the economy, accompanied by both positive and negative effects, nevertheless, import substitution, is a leading tool to overcome most unfavorable events in the country's economic system, which extremely aggravated in the first half of 2020. It is possible to force the development of import substitution's positive effects if there is a clear quantitative assessment of its effectiveness in terms of its impact on the growth of the Russian economy. 
 Based on a generalization and analysis of the methods and tools for assessing the impact of import substitution on the economy used by domestic and foreign authors in their studies, scientific-methodological approaches to such an impact were identified. In model approach, an author’s assessment methodology has been developed. At the first stage using an expanded system of import substitution effectiveness indicators, which grouped by sectors of the economy, a composite indicator of the effectiveness is formed by means of principal components method. At the second stage the dependence of economic growth on a composite indicator of import substitution effectiveness is formed by means of correlation and regression analysis. 
 General government of the economy can use our technique to shape an economic development strategy under the import substitution.

The Discussion on the Teaching Methods of Practical Training Courses for Intelligent Buildings in Higher Vocational Colleges

With the in-depth reform of our country's economic system, the demand for professional talents is increasing in economic development. As a main position for cultivating skilled and application-oriented talents, higher vocational colleges are self-evident in the importance. As a major feature of higher vocational colleges, practical training courses play an irreplaceable role in improving the quality and level of talents. This paper takes the intelligent buildings in higher vocational colleges as an example to discuss the teaching of practical courses. With the rapid development of modern intelligent buildings and smart homes in our country, the demand for intelligent talents has increased dramatically. In the early 21st century, China approved the establishment of the " intelligent building engineering technology" major in higher vocational colleges. This major integrates computer communication technology, construction technology and automatic control technology. This major is very applicable and practical, but many higher vocational colleges were weak in practical training. Next, I will discuss some reflections on the teaching of training courses for intelligent buildings in higher vocational colleges.

The role of the human factor in the country's economic security system

The role of the human factor in the country's economic security system

О производственных функциях производительности труда в регионах России

To identify determinants of labor productivity, correlation relationships were estimated for indicators reflecting the influence of 30 socio-economic and innovative factors in the regions for 2015-2017. Of the 30 factors, for some factors, a significant correlation was found, characterizing their indicators and labor productivity. For these indicators, models of linear production functions were constructed. Modeling made it possible to establish that the following factors have a significant impact on labor productivity: capital productivity, investment, foreign investment, the number of government employees, wages, income inequalities, the number of university faculty, the number of advanced production technologies used, and the consumer price index. The instability of assessing the impact of indicators characterizing the determinants of labor productivity can be explained by two reasons of a different nature. Firstly, the development of the country's economic system at present may in fact be unstable. This problem determines the need for additional research. Secondly, the models obtained by the standard inclusion-exclusion method without taking into account and eliminating the multicollenarity effect can significantly reduce the reliability of estimates obtained by the least common square method. This determines the need to continue work using a more advanced modeling technique.

Analisis Tingkat Implementasi Good Corporate Governance Pada Usaha Kecil Dan Menengah (UKM) di Kota Padang

Nowadays economic independence is one indicator in measuring the welfare of a country. Economic independence is made from the current country's economic system. An economic system is a systematic way in which a country distributes its resources. The better the system is implemented, the better the economic growth rate of the country will be. One things that mostly affect the rate of economic growth is the increasing number of Small and Medium Enterprises (SMEs). Therefore, the government has designed the program for SMEs which is not supported by Good Corporate Governance (GCG), which results in lack of integrations between the government program and the SME management system. The purpose of this study is to investigate aspects of the management arrangements of 150 SMEs in Padang, and also to identified all aspects which is need to be modified so that the Good Corporate Governance (GCG) system can be implemented on these SMEs. The survey results in this study found that the implementation of Good Corporate Governance in Padang City SMEs is still very limited, so this research still needs to be explored further to find the right Good Corporate Governance (GCG) patterns implemented for Padang’s SMEs.

AN ANALYSIS OF THE CURRENT CHALLENGES OF THE BANKING SYSTEM IN IRAN

According to Iran's 20-year vision plan, the Islamic Republic of Iran should achieve the first economic, scientific and technological status at the regional level with rapid and continuous economic growth, relative promotion of per capita income and attainment of full employment. Also, according to paragraph 5 the requirements of Iran's 20-year vision plan, achieving such a position requires a continuous 8% growth in the economic sector with an emphasis on investment development, productivity enhancement, business environment improvement, and strengthening and developing the national standard system; the achievement of these goals also requires an efficient, stable, disciplined and dynamic banking system, because the country's economic system is bank-oriented and the banking industry has a significant share of the financing of our economy (Central Bank of the Islamic Republic of Iran, 2014). Nowadays, issues such as supervision, transparency, quality of regulation, fight against corruption, etc. in the banking and governance system are one of the key indicators considered internationally, this has been one of the main concerns of the people at both the micro and macro levels. At the organizational level, the purpose is to understand the actual performance of the organization's managers and the degree of success of the companies, but at the macro level, understanding the importance of responding to people and moving towards development within government has been of interest; the present paper examines a practical framework for moving the banking system in the direction of better regulation and consequently better policy-making and realization of good governance goals and its integration with the economic growth and development of Iran.

Management of E-Commerce: Impact on Start-Up Ecosystem

The e-commerce sector is one of the emerging and promising sectors. At the same time in the Kingdom of Saudi Arabia, this sector is experiencing a significant growth spurt that makes it one of the sectors supporting the national economy by attracting more investments. In turn, it contributes to supporting GDP, as well as its role in creating more job opportunities for young people through expanding entrepreneurship and innovation. E-commerce contributes to creating new employment opportunities; Either by making it possible to establish small and medium-sized commercial projects for individuals and linking them to global markets at the lowest investment costs by creating a means of direct communication between the consumer and the product, or by providing them with job opportunities in many different fields related to e-commerce applications; Such as e-commerce website specialists, store workers, administrators, and technicians. Despite this, the success of the sector in fulfilling its targeted role according to the Kingdom's Vision 2030 remains subject to consumer awareness, their confidence in e-commerce, the logistics services, and payments system. Besides, the communication infrastructure through the expansion of the number of POS devices at various payment outlets, they have indeed witnessed significant growth. It recorded nearly 62% during 2018 compared to the situation in 2017. However, the number of these devices is still needed to expand. The expanded role of this sector also requires taking into account work on organizing many activities to educate citizens about the importance of this sector to the various global e-commerce sites and how to use them, taking into account the language so that there are no obstacles between the users of these sites. It should also work to consider the cost of shipping expenses so that everyone can spend their requirements through e-commerce sites. The Internet and the latest technological advancements resulted in the emergence of e-commerce. E-commerce is changing the business environment across the globe. However, the motivating factor for this research has been the lack of research linking the development of e-commerce and its impact on the start-up ecosystem that is specific to Saudi Arabia. There is a general agreement amongst the scholars and experts that the start-up ecosystem plays a critical role in the country's economic system and e-commerce has become an integral part of that economic growth story of nations including Saudi Arabia. Therefore, the primary aim of this research was to examine the impact of e-commerce on the start-up ecosystem in Saudi Arabia. The authors analyzed the scientific journals and articles on the selected theme. The theoretical findings were put to the test using qualitative interviews that lasted between 30-45 minutes with eight highly skilled and experienced professionals in the field of e-commerce, start-up ecosystem, and management areas. Based on literature research and qualitative interviews, the key findings of this research are: (1) e-commerce and start-up ecosystem are amongst the key drivers of Saudi Arabia’s economy, (2) e-commerce have a significant positive impact on start-up ecosystem of Saudi Arabia, and (3) e-commerce has facilitated the start-up ecosystem to become inclusive through the rise of women entrepreneurship in Saudi Arabia. Keywords: e-commerce, start-up ecosystem, women entrepreneurship, internet technologies.

Karl Polanyi and substantivism in economic development

A reading of Karl Polanyi's work gives us a broader and more plural view of the development process beyond the exclusively economic dimension. This scientific textaims to recover the theoretical contribution of Karl Polanyi and its contribution to the understanding of the development process from a plural and substantive conception of economy. The key lesson learned in this research is that regardless of a country's economic system, one should pay attention to the existing institutional variety and complexity of its cultural and social mosaic. True development will only be achieved if it is structured with effective public policies in order to promote this heterogeneity to the maximum possible social welfare. JEL Classification: B59.

Socialism in America: Shifts in Public Consciousness

In the American political life of the last two decades and three election campaigns – 2016, 2018 and 2020 the ideology of socialism, as an alternative to the existing liberal democracy and capitalism in the country's economic system, has played a significant role. The article examines the origins of socialism in the United States, the reasons for its rise in the early XX century and its retreat under the influence of the "Red Scare" campaigns later. The article analyzes the reasons for the rise in popularity of socialism in the last two decades, primarily among young people, and examines the attitude of the population, various strata and groups to the main programs of reforming the country on socialist principles. The article examines the impact of the discussed social reforms in the programs of politicians in the 2020 campaign on the outcome of elections and possible changes in American political life under the influence of new generations of socialist-oriented politicians.

THE EFFECT OF FIVE STOCK EXCHANGE MOVEMENT FROM 25 BIGGEST STOCK EXCHANGE IN THE WORLD TOWARD INDONESIA STOCK EXCHANGE PERIOD 2012 - 2017

The IDX is inseparable from the influence of the global stock market, because globalization makes a country's economic system open. For Indonesia and several stock exchanges where the market capitalization is relatively small, optimism and pessimism of foreign stock investors is expected to greatly affect the movement of stock indexes. The fall of the global market has become a negative sentiment for the JCI movement. This study aims to determine the effect of the movement of five stock exchanges in the world on the ICI. In this study used multiple linear regression method using SPSS 25.0 statistical software. The results showed that SSE had no significant effect on CSPI while Nikkei 225, DJIA, S&P BSE Sansex, and STI had a significant effect on ICI during 2012 - 2017.

Reindustrialization of economy on the basis of technological modernization: an essential characteristic of the concept

Purpose. The aim of the article is theoretical substantiation of the essence of economic reindustrialization on the basis of technological modernization. Methodology of research. The following scientific search methods are used during the study. In particular, the abstract and logistic method is used to summarize the concepts of “industrialization”, “reindustrialization” and “modernization”; to draw conclusions based on the analyzed theoretical base – methods of induction and deduction; epistemological, critical and dialectical methods made it possible to formulate the author's definition of the essence of economic reindustrialization on the basis of technical modernization. Findings. The views of domestic and foreign scientists on the definition of the concepts of “industrialization”, “reindustrialization” and “modernization” are investigated. The author defines the concept of “economic re-industrialization on the basis of technological modernization”. It is proved that understanding of economic reindustrialization on the basis of technological modernization in this aspect lays prospects for further development of this problem within the framework of national science of state regulation of national economy. Originality. The author defines the author's definition of economic reindustrialization on the basis of technological modernization as a process of renewal and growth of industrial development rates due to the renewal (on innovative basis) of technological and technological capacities of the country's economic system, active implementation of institutional reforms and structural changes, restoration of the real sector of economy in order to create a powerful industrial base, the basics of future effective social and economic development of the national economy. Practical value. The developed theoretical provisions of economic reindustrialization on the basis of technological modernization can be used as a basis for implementation of these processes at the level of the Ukrainian economy. Key words: industrialization; reindustrialization; modernization; technological modernization; economic re-industrialization on the basis of technological modernization.

INCLUSIVENESS IN NATURAL USE IN CASE OF THE RESERVED FUND

Topicality. Together with the comprehensive urbanization and interference of economic processes in natural ecosystems, it is more difficult to separate natural protected areas from human activities. The accelerated growth of the planet's population increases the demand for both exhausting natural resources and inexhaustible ones, which deepens its negative environmental situation. Protected areas, as standard natural reserves, can best show the full value of untouched nature, and at the same time its vulnerability. It should be the source of environmental initiatives and the "school" of combination the ecological and economic interests of society. On it’s basis the ecological consciousness is formed. So, it is necessary to develop the appropriate preconditions for the development of a natural reserve fund, in which its functioning becomes an integral part of socio-economic development of society, more accessible, and therefore inclusive.Aim and tasks. The aim of the article is to determine the organizational and economic basis for the development of inclusiveness in environmental activities, taking into account international experience, sources of funding and structure, identifying factors contributing to the inclusion of these territories in the economic system of countries; definition of deficiencies inherent in the organization of the activity of the nature reserve fund in Ukraine; generalize information on inclusiveness in nature management.Research results. The article, based on the experience of developed countries in the field of creation and organization of the nature reserve fund (NRF), identifies the main advantages of combining their socio-ecological significance with the economic development of both the territories themselves and the economy of the country as a whole. There are considered: trends of ownership patterns on natural reserve areas in the countries of the world and Ukraine, size of their financing, and the income of the states from the activities of the National Natural Parks (NPP). There were identified problem issues of the field of bequest in Ukraine, in particular the social component, namely, the lack of awareness of the population about the problems of the NRF and its role in ensuring the welfare of society. The problem is considered from the point of view of the availability of NRF facilities for the population, in conjunction with compliance with all environmental standards. Is given an author's definition of the concept of inclusiveness in nature conservation activity. On the basis of comparison and analysis of the structure of the NNP of other countries, recommendations were given regarding the introduction of incentives for the reproduction of natural territories in Ukraine.Conclusion. It is explored that inclusive economic development, ecological awareness and education of the population at all levels of socialization of an individual in a society plays a leading role in the field of preservation of natural territories and the creation of NRF. An important contribution to this issue is the individual experience of the person with regard to inclusive nature and positive impressions. The solution of these problems will contribute to further development in such areas as education, tourism, mass media, psychological rehabilitation, etc. It has been established that the nature reserve fund (NRF), subject to appropriate organizational and economic support, can bring significant profits in the country's GDP, while not creating recreational overload on natural systems

EFFECT AND IMPORTANCE OF CREDIT FLOWS FROM MONETARY POLICY MANAGEMENT ASPECT

The paper focuses on a topic that explains the impact of credit flows on the conduct of monetary policy, as well as their impact on economic activities within national economies in certain countries in the world. Function and importance for the banking sector, as well as for all economic entities, which are categorized by company size, and the impact on the performance and realization of business activities.By comparing similarities and differences, there is a clear distinction between the basic banking channel of credit and the credit channel in the wider sense, as well as their degree of operation in the period before, during, and after the global economic crisis. The paper highlights the positive effects, as well as the negative, ie how their implementation affects the actors of a country's economic system and what are the consequences with a focus on demand, personal consumption, inflation and employment. The problems of adequate application of the model in periods of recession, as well as the degree of representation in developed countries, moderately developed, and countries in the transition period are studied.