BASIC ELEMENTS OF THE FINANCIAL FUNCTION IN BUSINESS ENTITIES

Conference Proceedings (part of ITEMA conference collection) ◽

10.31410/itema.2020.151 ◽

2020 ◽

Author(s):

Slobodan Bracanović ◽

Keyword(s):

Public Finance ◽

Real Economy ◽

The Real ◽

Business Entities ◽

Financial Economy ◽

Financial Function

Finance and accounting are the essences and the lifeblood of the business doing of business entities. Classical financial mechanisms and instruments are adapted to the contemporary conditions of profitable business doing. The real economy is the basis of the financial economy. Public finance is a special field. Virtual, parallel finance is manifested in contemporary business doing.

Download Full-text

Stimulating the Banking Sector Participation in the System of the Real Sector of Economy Support

Vestnik of the Plekhanov Russian University of Economics ◽

10.21686/2413-2829-2020-5-5-15 ◽

2020 ◽

Vol 17 (5) ◽

pp. 5-15

Author(s):

E. V. Altukhova ◽

M. A. Markov

Keyword(s):

Banking Sector ◽

Banking System ◽

Real Sector ◽

Real Economy ◽

Economic Interests ◽

The Real ◽

Key Characteristics ◽

Development Institutions ◽

Micro Level ◽

Business Entities

The development of the real sector is essential to ensure the growth of national economy in any country. The principle institution working with money in economy is banks. They maintain cash circulation of real sector companies and act as a source of investment, which is allocated in the form of banking credits. Taking into account the fact that the goal of stimulating the real economy growth is set not only for the banking system but for economy in general, the approach to its attaining should be complex and systematic. Because of that it is very important to develop a list of steps that could provide a differentiated approach in the system of supporting companies of the real sector. Such measures’ implementation includes the participation of development institutions and therefore, banks in the system of national projects realization. Upgrading legislative regulation in the sphere of interaction between banks and business entities is extremely important as well as the development of new finance tools providing the growth in finance potential in the real sector of economy. The article analyzes banks’ participation in crediting the real sector of economy in Russia, studies the key characteristics of crediting and puts forward steps both on the macro- and micro-level, which could coordinate economic interests of companies and banks and cut costs.

Download Full-text

The Real Economy and the Financial Economy

Globalization ◽

10.4324/9780203790687-4 ◽

2017 ◽

pp. 89-120

Keyword(s):

Real Economy ◽

The Real ◽

Financial Economy

Download Full-text

Crisis and the Role of Money in the Real and Financial Economies—An Innovative Approach to Monetary Stimulus

Journal of Risk and Financial Management ◽

10.3390/jrfm14030129 ◽

2021 ◽

Vol 14 (3) ◽

pp. 129

Author(s):

Richard Simmons ◽

Paolo Dini ◽

Nigel Culkin ◽

Giuseppe Littera

Keyword(s):

Asset Price ◽

High Growth ◽

Monetary Transmission ◽

Real Economy ◽

Poor Growth ◽

The Real ◽

Asset Price Bubbles ◽

Price Bubbles ◽

Financial Economy

`Financial crisis’ is sometimes regarded as synonymous with `economic crisis’, but this is an oversimplification and risks missing the feedback loops between the financial and real economies. In this paper, the role of money is revisited in the context of distinguishing the real economy from the financial economy. A theoretical framework is developed to explain how endogenous (bank credit) and central bank exogenous (quantitative easing, QE) money creation feed into the real and financial economies. It looks at how the velocity of monetary circulation varies between the two economies and across asset types within the financial economy. Monetary transmission mechanisms are set into a framework that helps explain how QE stimulus risks combining asset price bubbles with poor growth in the real economy. The real economy transmission mechanism of `helicopter money’ is given context, enabling an assessment of the efficacy of both the QE and helicopter money policy routes. Finally, we present a new type of monetary transmission, `Smart Helicopter Money’, to deliver monetary stimulus to innovators, SMEs and high-growth firms via both complementary currencies and a modified form of QE in order to achieve proportionally greater impact on the real economy.

Download Full-text

Remaking the Real Economy

10.1332/policypress/9781447356585.001.0001 ◽

2020 ◽

Author(s):

Gordon Pearson

Keyword(s):

Systems Analysis ◽

New Technologies ◽

Microeconomic Theory ◽

Real Economy ◽

The Real ◽

For Profit ◽

The Social ◽

Private And Public ◽

Financial Economy ◽

Effective Service

The fundamental distinction is made between the real economy and the financial. The financial economy came into existence to serve the real economy, but led by false neoclassical microeconomic theory, it has become predatory on the real economy. Rather than seeking to correct the false theorising, this book sets it aside in its entirety, focusing instead on practical realities. A Deming based systems analysis is provided of organisational systems, their individual components and their interactions with the social and ecological macro systems within which they operate. Those organisational systems serve the real economy which is recognised as having three distinct layers, each requiring a very different approach for their effective service. The social-infrastructural layer is a mandatory state responsibility, rather than being voluntary and competitive. The progressive-competitive layer, served largely by private for-profit organisations, depends on its competitive characteristics being protected and energised. The technological-revolutionary layer is best served by a collaborative involvement of both private and public organisational systems developing and applying new technologies to generate economic progression including the necessary sustainability revolution. Required actions are identified for that remaking of the real economy and escaping destruction by organised money. Appropriate measures of progression are proposed to replace the current orthodox measures such as GDP and its growth. Practitioner Notes provide examples of the practical realities of organisational systems in both the real and financial economies, demonstrating the inadequacy and falseness of neoclassical modelling and the destructiveness of its prime beneficiaries, organised money.

Download Full-text

Critical Success Factors in Russian R&D Projects in the Real Economy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2010-11-41-61 ◽

2010 ◽

pp. 41-61

Author(s):

V. Andreev

Keyword(s):

Empirical Research ◽

Critical Success Factors ◽

Success Factors ◽

Innovation Process ◽

Real Economy ◽

Key Factors ◽

Industrial Products ◽

Successful Development ◽

The Real ◽

Critical Success

The article discusses the concept of "success" in relation to innovative business and its performance. The quantity of innovative projects that can consistently overcome the stages of the innovation process to achieve the desired result is defined. The author presents the results of empirical research of successful and unsuccessful projects of leading Russian innovative companies in various industries, identifies key factors of successful development of new industrial products.

Download Full-text

On the formation of a New Paradigm of fiscal Policy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-6-152-158 ◽

2013 ◽

pp. 152-158 ◽

Cited By ~ 2

Author(s):

V. Senchagov

Keyword(s):

Public Finance ◽

Fiscal Policy ◽

Financial Crisis ◽

Global Financial Crisis ◽

Domestic Demand ◽

Real Economy ◽

New Paradigm ◽

Monetary Aggregate ◽

The Past ◽

The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

Download Full-text

Global Financial Crisis and Its Impact on Russia

Voprosy Ekonomiki ◽

10.32609/0042-8736-2009-1-9-27 ◽

2009 ◽

pp. 9-27 ◽

Cited By ~ 9

Author(s):

A. Kudrin

Keyword(s):

Monetary Policy ◽

Fiscal Policy ◽

Financial Crisis ◽

Central Bank ◽

Global Financial Crisis ◽

Developed Countries ◽

Real Economy ◽

Energy Prices ◽

Russian Government ◽

The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

Download Full-text