MATEC Web Conf.
Volume 106, 2017International Science Conference SPbWOSCE-2016 “SMART City”
|Number of page(s)||5|
|Section||8 Organization and Planning of Construction Works and Municipal Facilities|
|Published online||23 May 2017|
The conceptual framework of the impact of money supply on economic growth
1 Vyatka State University», Moskovskaya str., 36, Kirov, 610000, Russia
2 Moscow State University of Civil Engineering, Yaroslavskoe shosse, 26, Moscow, 129337, Russia
3 Moscow regional state University, Radio str. 10, Moscow, 129125, Russia
* Corresponding author: firstname.lastname@example.org
Lately, in political and economic circles, a fierce debate on the need for additional monetary emission in Russia. The debate continues to this day. A number of economists and entrepreneurs are convinced of the need for cash injection into our economy to stimulate economic growth. They claim that lack of money hinders economic growth, because the lack of financial resources is hampering investment. At the same time criticized the Central Bank for a set them high key interest rate today at 10 %, which hampers not only investment in the real sector of the economy, but the current actual production. After all, profitability in most sectors of the real economy below 10%. Other economists, including the Government of the Russian Federation and the Central Bank of the country, hold the opposite point of view. They believe high inflation is the main constraining economic growth factor. According to them, only after a drop in inflation, the Russian economy will be able to start growth, and additional money creation will only fuel inflation. Therefore, the first step is to suppress the rising prices, lowering inflation to 4% per annum. In this direction and concentrated all the efforts of the monetary authorities, which are primarily in the key interest rate and limit the supply of money. Of course, the dispute about such issues as stimulating economic growth by an additional cash infusion, should be resolved through analysis of the theoretical foundations and the empirical data obtained in practice, as in Russia and other countries of the world.
© The Authors, published by EDP Sciences, 2017
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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