Liquidity Maneuver in the Russian Financial system in the Context of Inflation Issues and stock Market Development

Abstract

The object of the study is the financial system of Russia. The subject of the study is the reasons for the increase in household deposits in banks and the impact of these funds on the economy during the period of reducing the key rate. The relevance of the work is due to the potential impact of these funds on inflation. The purpose of the study is to assess the volume of funds on bank deposits that can exert inflationary pressure, and to develop proposals for its minimization. Econometric modeling and general scientific methods, including analysis and synthesis, were used. Based on the results of the study, it was recommended that authorized government agencies carry out a liquidity maneuver in order to reduce inflationary pressure from deposits. This should also contribute to the growth of stock market capitalization. scientific novelty lies in a comprehensive study of the problem of household savings and the proposal of a liquidity maneuver to solve a number of macroeconomic problems. Conclusions are made that deposits can affect inflation depending on the macroeconomic scenario. To minimize this impact, the authors proposed to conduct a liquidity maneuver, the effectiveness of which will depend on the implementation of a set of measures, including: expanding the investment insurance system to include property recorded in all household investment accounts; increasing the profitability and diversity of collective investment schemes through legal incentives for management companies by the regulator within the framework of consolidated supervision; improving the culture of dividend payments within the framework of the exercise of shareholder rights; promoting the creation of independent “long-only” funds that invest for the long term; creating a state-controlled fund to support the IPO market and secondary circulation of recently listed shares; fine-tuning tax incentives for companies entering IPO and SPO, and for households investing in industries critical to the economy; exemption from dividend taxation; creating guarantees for households participating in IPOs; popularizing the culture of investment in the media. The results of the study may be useful to government agencies when making decisions on further macroeconomic policy.