Monetary Relations Research Articles

Ризики монетарної політики: “нова реальність”

Introduction. The COVID-19 pandemic has forced central banks to make a significant correction of their monetary policy, which has been discussed in many academician publications. At the same time, much less attention has been paid to the question of the risks that arise. Problem Statement. The coronavirus pandemic was the first wave of new disruptive forces that created new and seriously exacerbated some existing risks, including economic ones, and, in particular, those that arise during the implementation of monetary policy, or significantly affect it. Further events caused by the full-scale invasion of Russian troops into Ukraine became the second wave, which became felt throughout the world and only cemented the state of the “new reality”. Purpose. Analysis and systematization of existing risk assessments that arise in connection with the modification of monetary policy in response to the threat of the COVID-19 pandemic, independent identification of additional risks and a comprehensive qualitative assessment of the degree of threats arising from these risks. Methods. The methodology of the system approach, factual, situational analysis and synthesis, and the event analysis method, which is traditional for analyzing whether the relevant event has a significant impact on a certain activity (in our case, monetary policy), were used. Results. The “new reality” caused by the coronavirus pandemic and established by the full-scale invasion of Russian troops into Ukraine led to the emergence of a number of macroeconomic risks that were a direct result of these events (“panic risk”) or its consequences, caused not so much by, for example, the pandemic itself, but ill-conceived, sometimes inadequate anti-pandemic measures resorted to by governments and, to a lesser extent, monetary authorities (risks of economic crisis and stagflation). At the same time, the triggers of these macroeconomic risks, in addition to panic, were some specific financial risks (credit, currency, interest), insufficient attention to the manifestation of which in the conditions of the “new reality” led to the emergence of a serious systemic risk in some countries. In general, however, it was possible to keep the situation under control, which, however, forced the fiscal and monetary authorities to take extraordinary measures. Conclusions. The coronavirus pandemic caused serious upheavals in the field of monetary relations and created new and increased traditional risks for actors in this industry (which, to one degree or another, includes all participants in economic relations). However, considering the qualitative side of the problem, it can be indicated that the mentioned risks are divided, first of all, into i) risks for monetary policy itself and ii) risks arising from the conduct of monetary policy, which pose threats to the relevant sectors of the economy (most often , for the financial and banking system) and return to the monetary authorities in the form of new challenges that will require a certain correction of their policy in the field of monetary relations.

THE ROLE OF THE INTERNATIONAL MONETARY FUND IN THE INTERNATIONAL MONETARY SYSTEM

The International Monetary Fund (IMF) is at the center of the international monetary system. Such a position allows this institution to influence monetary relations among all subjects that enter into such relations. The aim of this paper is to ensure a better understanding of the establishment and operation of the International Monetary Fund, as well as the structure of the International Monetary Fund and its impact on the international monetary system. In this context, the paper addresses the question of whether the International Monetary Fund has the ability to be the main actor in regulating international monetary relations. In order to provide the whole picture, this paper first analyzes the reasons for the establishment of the International Monetary Fund, its legal position and organization. In particular, the authors focus on the changing role it played within the Bretton Woods International Monetary System, and the role it plays today.

Cryptocurrency as a Possible Alternative to the De-dollarization of the Global Monetary System

The article analyzes the ongoing changes associated with the financial instability of the current global monetary system. In the course of the study, the prerequisites aimed at changing the world monetary order were considered; an assessment was made of the possible use of cryptocurrency as a new global monetary standard. The concept of supranational currency is formulated. The paper proposes an alternative theoretical solution for the circulation of the world monetary system, based on the simultaneous circulation of several types of world currencies at once, including cryptocurrencies. The purpose of this study was to study and determine the trends of ongoing changes associated with the transformation of the world monetary system, the circulation of cryptocurrency and a decrease in the level of confidence on the part of the world community in the US dollar. As a hypothesis of the study, the judgment is formulated that the improvement of the world monetary system must be carried out through the introduction and development of cryptocurrency as a new independent financial instrument that meets the requirements of modern society, as well as the processes of functioning of international monetary relations. The analysis of the actual problems of the current state and the prospects for the circulation of the current global monetary system made it possible to formulate the factors that influence the increase in the demand for cryptocurrencies among market participants. An assessment of the future of cryptocurrencies was carried out, the prospects for the influence of the existing world monetary system on international financial relations, as well as the further role of cryptocurrencies in it, were considered.

КРОСКУЛЬТУРНЕ ДОСЛІДЖЕННЯ ПСИХОЛОГІЧНИХ ОСОБЛИВОСТЕЙ МОНЕТАРНОЇ СОЦІАЛІЗАЦІЇ СТУДЕНТІВ ПОЛЬЩІ ТА УКРАЇНИ

The article presents an empirical study of the psychological characteristics of monetary socialization of students in Poland and Ukraine. Complex and ambiguous transformations in our society are primarily associated with the economic crisis as a result of the pandemic and war, the country's monetary policy necessitate the preparation of economically competent high school graduates who are able to independently and responsibly solve issues related to money. Rational monetary ideas are universal and applied in all spheres of life, while in the conditions of reorientation of the Ukrainian economy to market values, a young person without an adequate financial and economic orientation, without the ability to effectively manage money cannot be considered prepared for life and work, especially in crisis conditions. Рsychological features of the components of monetary socialization of student youth depending on the socio-economic living conditions and ethno-cultural factor are identified іn the course of the study. The peculiarity of the content of the cognitive component of Polish students is the absence of destructive ideas about money. They are not inclined to overestimate and underestimate the functions of money, which contributes to their rapid and successful adaptation in the field of monetary relations. Students from Western European countries are characterized by a morally positive assessment of money, while for students from Ukraine – a morally negative assessment.

Post-Keynesian Economics: New Foundations, by Marc LavoieChapter 7: Open Economy Macroeconomics

ABSTRACT Reviewing Marc Lavoie’s comprehensive and well-structured discussion of open-economy macroeconomics allows us to revisit some key Post-Keynesian contributions and confirm their continued relevance to our understanding of international economic, financial and monetary relations. In the process Lavoie draws a consistently sharp contrast with standard-theory concepts and models, much of it organized around his elaboration of endogenous money in an international context and modern trade flows embedded in a highly globalized and financialized world economy which have little to do with comparative advantage. He thereby provides us with a conceptual road map for a meta-economic revolution which recognizes that the world economy has a growth dynamic all of its own rather than being just the sum of its parts, the two-hundred or so national economies connected to each other through their balance of payments and exchange rates.

Integrating Gold-Backed Cryptocurrency for Blockchain Net Settlement to Achieve Future Economic Stability

The purpose of this research is to study the possibility of Gold-backed cryptocurrency for net settlement through blockchain technology and its implications on economic globally. The paper attempts to explore the challenges in expanding cryptocurrency backed by gold and to develop the new framework on cryptocurrency backed by gold model for net settlement through blockchain technology to achieve economic stability. To achieve the objective of the study qualitative method has been used, such as content analysis and semi-structured interviews. The study is expected that by implementing a gold-backed cryptocurrency will boost intra-country trade. This effect would be more robust than those generated by the existing economic model. An Islamic monetary system in the modern digital era, would modify international monetary relations in the direction of establishing a stable and just global monetary system by merging the Gold-backed cryptocurrency model for blockchain net settlement with an Islamic fiscal policy. The implementation of gold-backed cryptocurrency through blockchain would solve many of economic problems such as inflation, change the value of money, bring stability and sustainability to our financial obligations and transactions.

Transferable Ruble as a Unique Project of International Monetary Relations

Transferable Ruble as a Unique Project of International Monetary Relations

Financial geography I: The state-finance nexus

In the first of my reports on financial geography, I focus on a growing body of work that engages with the state as a vital and strategic actor in financial markets and in the global economy. After the 2008 global financial crisis, austerity measures and impacts on public finance have reshaped local-central government relationships with increasing use of financial instruments and market solutions. The growing prominence of sovereign wealth funds, shifting roles of national development banks and central banks, and impacts of currency internationalisation are raising questions about new forms of financial statecraft and opportunities for changing configurations of global hegemony. Taken together, a renewed engagement with a political economic lens and focus on state-finance relations illuminate the changing positionalities of economies and financial actors in the spatial organisation of international financial and monetary relations.

Sistem Kerja Keuangan Internasional International Financial Work System


 International financial management is planning, organizing, and controlling the finances of Multinational Corporations (Multinational Corporations, often called MNCs). Multinational companies are companies that operate worldwide. MNC finance is rightly defined as a system of monetary relations, which generate the economic activities of the MNC and are necessary for the accumulation, allocation, and efficient use of capital and income funds. In that way MNC finance is a special system, not only because it ensures the smooth functioning of the corporation, and its effective development and allocation depends on the state of world markets, but primarily by the fact that the MNC's financial system itself affects the state of the national economy and the whole of global finance.
 Keywords: Company, Finance, Multinational

Reorganizing the Escudo Zone: Portuguese Monetary Policy and Empire-Union in Africa in the 1960s

AbstractIn the 1960s, the escudo zone, comprising Portugal and its African colonies, countered the trend of European decolonization. The Portuguese state reorganized monetary relations in the empire-state with the help of a new legal framework. The aim of this imperial economic reorganization was to establish a balance of payment relations which was expected to facilitate Portugal’s economic modernization and the country’s association with liberalizing economies in Western Europe that were experiencing rapid economic growth. However, the escudo zone soon became dysfunctional. Mata explains why the designs of economy building in a Portuguese empire-state could not be realized, given the trend toward independent political and economic development in Lusophone Africa.

Reality as Presented in Estonian Legends of Hidden Treasure

Stories of hidden treasure are different from other folkloric forms as in the Estonian folk tradition the motif of money is present in all genres. Monetary relations are discussed in proverbs and riddles. The problems of poverty and wealth are present in fairy tales. Opinions and dreams concerning money are verbalised in poetic forms in folk songs. People know and still practice various methods, partly based on traditional beliefs, that are known to bring good luck in money. The techniques of old magic meet modern recommendations of various kinds. In this article, the focus is on tradition relating to stories of hidden treasure. The legends and other stories (about 5,000 archive texts and recordings) are kept in the Estonian Folklore Archives and date back to the 19th and 20th centuries, although there are more recent materials. We can find three main fields in this tradition, depending on their connection with reality: 1) stories based in fact and on a real event, as evidenced by for example an archaeological find; 2) narratives that are part of local historical and toponymic traditions representing mental geography; 3) unlocalised stories that do not represent folk beliefs or legends and instead deal with more general questions such as what the real price of economic growth is, what consequences humans can face when luck smiles on them, what dangers – including supernatural sanctions – threaten people, and what consequences can be expected when they come into contact with treasures of unknown origin.

КИЇВСЬКИЙ КОНТРАКТОВИЙ ЯРМАРОК НАПРИКІНЦІ XVIII – НА ПОЧАТКУ ХХ ст.

The article analyzes the role of the largest contract fair in the socio-economic development of Kyiv and Ukraine. The relevance is determined by the state of the historiographical situation regarding the socio-economic development of commodity-money relations that arose on the basis of an artificially created important trading area in Kyiv and dominate modern pro-European perspectives. The authors present the key concept of «contract fair» as a trading area for commodity-money and exchange relations. Based on the collected factual material, the main factors of the contract fair’s impact on the socio-economic development of Kyiv, as well as the conscious perception/understanding of reality by the population, the inclusion of Kyiv residents, Ukrainians and visitors in the life of the city, and changes in its infrastructure are highlighted. It is proved that an important element of Kyiv’s use in the socio-economic development of the Right Bank of Ukraine is its convenient geographical location. Kyiv was an important administrative unit of Ukraine in the historical period studied by the authors. Its status has been preserved to this day. The convenient location of the city and the interest of the Kyiv administration in developing trade relations contributed to the expansion of international relations between city traders and foreign trade institutions. The Russian Empire and Napoleon also had mixed interests in using Kyiv to their advantage. For the Russian Empire, it was an important strategic outpost in the Southwestern region, which served as a military base for Russia’s expansion to the south against Turkey; the spiritual center of East Slavic Orthodoxy. For Napoleon, it was an important military strategic direction. The socio-economic role of the contract fair is important for the development of interethnic trade and monetary relations and the further development of Kyiv. The presented scientific conclusions and generalizations are based on the study of archival materials, sources and literature of the late 18th and early 19th centuries.

Financial market of the Russian Federation: concept, main vectors of development

The article considers the financial market as a set of monetary relations that ensure the accumulation, redistribution and investment of funds. The author lists its elements, provides a list of regulatory legal acts regulating relations in certain areas of the financial market and so on. Analysis of the acts of the Central Bank of the Russian Federation as a mega-regulator of financial markets allows us to identify five main directions of financial market development in the near future. The author also consistently reveals the tasks that need to be solved for the implementation of each direction, and author’s comments are given. In conclusion, the relevant research conclusions are formulated.

Tensions Between Cuba and the USSR After the Cuban Missile Crisis: From International Politics to Political Economy

In this paper the author examines the contradictions between Cuba and the USSR after the Cuban Missile Crisis. The author's review of the academic literature on the subject reveals that both the conflict itself and its short-term consequences have been extensively analysed. Yet, as far as one could ascertain, there is no historiography that sheds light on the further development of the contradictions between Cuba and the USSR in the 1960s. Drawing on documents from the Soviet embassy in Cuba held in the Russian State Archive of Contemporary History, the author demonstrates that the Cuban government was still extremely concerned about its security and on several occasions even attempted to join the Warsaw Pact. Contradictions between the two countries deepened with the radicalisation of Cuban position on the international stage and the implementation of guerrilla tactics pursued by Ernesto Guevara, who also tried to implement them during his trip to Africa at the turn of 1964-1965. This is evident from the notes the revolutionary took during the trip. The document, held in the personal archive of Guevara at the Che Guevara Studies Centre in Havana, is being introduced into academic discussion for the first time. The author explores the contradictions between the USSR and Cuba over issues of socialist construction, taking as an example the economic debates in Cuba and the attempt to introduce the budgetary finance system, which was later replaced by the economic register, implying the total negation of monetary relations. The study shows that Cuban socialist construction schemes in the 1960s reflected a radical political economy approach that could not be characterised as classical “real socialism”.

ENSURING FINANCIAL SECURITY IN THE FACE OF COMPETITION BETWEEN NATIONAL AND ELECTRONIC CURRENCIES

The environment created in international monetary relations in the last decade following the global financial and economic crisis causes more concerns than optimism, both in terms of the financial systems of the national economies of individual countries, as well as the future course of the world economy. There are also many countries that have not even overcome the second wave of the global financial and economic crisis, the external debt crisis (Greece, Spain, Portugal, Holland, etc.). And in a broader sense, both in the economy and in the financial system, the general uncertainty is increasing.

Становление монетной терминологии в России: "монета"

The word “moneta” came into Russian owing to Peter the Great. This tsar sow the word on large European gold and silver coins, and decided that thereby it did guarantee an international recognition for any national currency. Thereafter in Russia for a long time only large denominations were called “monetae”. Just near 1760 the “moneta” has become an unique designation of any monetary unit regardless of its value and origin. Thus, present study offers the answers to the following questions of Russian history: firstly, where from and why the word “moneta” did appear in Russian; and secondly, how and how long the “moneta” and another words and word combinations, which derived from this word held firm in modern terminology. Reconstruction of these terms' evolution relies on the method of written sources analyze. Available documents, where the special concepts and terms are encountered, were divided into three groups corresponding the height of administrative level of the source, which made this document - upper middle or lower. On each of a levels the terminology developed at a different rate, which depended mainly on a personal factor - the presence of a motivated and authoritative specialist in the minting or in the improvement of the monetary relations' theory. In this case, the completion of the formation of each terminological concept is recorded exclusively in the documents of the highest level (emperors, Senate, and government).

ФІНАНСОВЕ ЗАБЕЗПЕЧЕННЯ ЗАКЛАДІВ ВИЩОЇ ОСВІТИ: ЗАРУБІЖНИЙ ДОСВІД

The competitiveness of the national economy in the modern system of the world economy depends on the level of development of national science. Therefore, a sufficient level of appropriations for science is one of the main conditions for the effective use of scientific potential as a leading factor of economic development. In the knowledge economy, public funding of science is seen as an investment in the future, which will ultimately bring high dividends to society as a whole. In order to function successfully, the field of education needs to be provided with sufficient amounts of financial resources. Education finance is a system of monetary relations regarding the formation, distribution and use of various financial resources or funds of funds. As a result of the implementation of these relations in educational activity, various funds of financial resources are formed, the purpose of which is to ensure the effective functioning of institutions of the education system. In recent decades, the financing of higher education has undergone significant changes throughout the world. In general, these changes are caused by the fact that the costs of financial support for higher education increase every year, and the rate of growth of higher education costs does not provide an opportunity to meet all needs. Accordingly, the majority of higher education institutions in the world began to face the problem of lack of financial resources for the implementation of educational activities. The main problem turned out to be that the needs for resources were growing rapidly, while the financial support of the state remained unchanged or even decreased. The article examines the peculiarities of financial provision of higher education in economically developed countries. The interdependence of the financial provision of higher education and the level of economic development of the state is substantiated. The problems of financing higher education in Ukraine and the countries of the world were studied; ways of diversifying sources of financial resources of higher educational institutions; state and trends of expenditures on higher education in the countries of the world. Proposals for improving the financial provision of higher education institutions in Ukraine have been submitted.

ECONOMICS AND ADVANCED CALCULATION METHODS OF FINANCIAL ENGINEERING

Topicality. The article defines the place and implementation of the tasks of financial engineering. In recent years, against the background of the active use of trade and financial instruments, the complexity of monetary relations between enterprises and financial institutions and the wide spread of computer technologies increase the relevance of the topic.Aim and tasks. The main purpose of the article is to determine the possibility of misuse of financial instruments reflecting the system of risk management, which is an element of financial engineering, which is considered as a means of achieving the competitiveness and strategic advantage of organizations.Research results. In the modern world, the processes of making managerial decisions are becoming more and more complex, while it is necessary to take into account an increasing number of factors that affect the financial results of an enterprise. Decision-makers are required to use mathematical skills in the design of financial transactions, knowledge of the basics of computer modeling. Today, not a single major financial institution in the world, including central banks, can work without computer mathematical models of modern financial science. From this point of view, a new direction in the training of specialists is relevant - financial engineering.Materials and methods. While conducting the research, sources related to financial engineering were examined, articles related to the complexity of monetary relations between enterprises and financial institutions and the wide spread of computer technologies were analyzed. Content analysis, induction, deduction, and comparative analysis methods were used during the research.Conclusion. The conclusion of the study is that the use of innovative financial technologies or the borrowing and use of advanced financial instruments from us requires a qualitatively new arrangement of cooperation, which is not possible under implementing sanctions. The final result is that the use of innovative financial technologies, the organization of the professional association of economists and financiers of the country, the creation and development of self-regulating organizations, the formation of a community of highly qualified specialists and the development of the quality management system of educational services are necessary for the development of machine building in Azerbaijan.

Interest rates and inflation at the present stage in Russia

The subject of the study is the processes of interaction between interest rates and inflation in the domestic economy, contributing to changes in the quality of life of the population, business activity and the volume of investments of organizations. the purpose of the work is to establish a mechanism for increasing the efficiency of the interest rate and stabilizing inflation in the conditions of turbulence of the Russian economy. the study summarizes the processes of the relationship between the key rate of the Bank of Russia, bank interest rates and inflation; the reasons for the price increase have been identified, the current trends in the consumer price index, the dynamics of prices in the markets of goods and services, changes in the cost of housing have been identified, and the conditions for increasing the effectiveness of the interest rate in Russia have been established. Through a systematic and comprehensive analysis, the strengths and weaknesses of inflation targeting as a tool for stabilizing monetary relations under conditions of uncertainty in Russia are identified; the dependence of the growth of the consumer price index (inflation rate) on average annual interest rates is revealed. the conclusions are made that the strengthening of the role of the mega-regulator for regulating the interest rate and the inflation rate makes it possible to determine clear guidelines and quickly adapt to new macroeconomic conditions. the proposals to increase the efficiency of the interest rate and stabilize inflation within the framework of the implementation of a soft monetary policy are substantiated.

Cryptopace and problems of decentralization of the financial system: view from Russia

The article examines the problems of the formation of cryptospace in modern Russia, determines the objective prerequisites for the formation of a parallel fi nancial system, which is based on blockchain technology and the idea of cryptocurrency circulation. The author presents the characteristic features of centralized and decentralized financial systems, considering differences in the way to achieve goals, the functioning of regulatory norms of legislation, the degree of fi nancial independence and manufacturability. It is indicated that the very ideology of a free market economy and free circulation of information in the context of digitalization led to the emergence of these phenomena. The objectivity of these phenomena raises the question of the admissibility of their introduction into the fi nancial system of the Russian Federation. The author critically comprehends the provisions regarding the advantages and disadvantages of cryptocurrencies in the context of the development of the fi nancial system. It is indicated that this form of circulation of fi nance is new and promising, although it carries signifi cant risks for both the fi nancial system and users. At the same time, arguments are given in favor of the legalization of cryptocurrencies in Russia, a model for the circulation of cryptocurrencies is given that considers the interests of all participants in virtual monetary relations, and a promising direction for further research on cryptocurrencies and blockchain technology is identified.