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The development of national innovation system is influenced by the number of internal and external factors that should be taken into account in government policy aimed at encouraging and supporting innovation. The paper reports the analysis of macroeconomic factors that determine the development potential of the innovation system in Russia. These factors include: general economic indicators, individual sector performance, parameters of fixed production assets, labor and investment resources. The evaluation of multiple conditions shows that extensive factors of economic development may be used in the short term as their limitations do not allow using them in the long term. Therefore, it is necessary to accumulate factors of intensive development through innovation. A comprehensive analysis of the impact of macroeconomic factors on the functioning of national innovation system permits to produce recommendations on how to adjust the government policy in order to create favorable conditions for innovation activities.

The stability of the national economy is dependent on the investment climate. The purpose of the study is to identify prospects for improving the investment climate in Russia by taking into account the level of influence of investments in individual sectors of the national economy on the change of their share in the structure of the GDP of the country. In order to achieve the purpose of the study, the authors set the following tasks: to analyze the dynamics of investment in equity between forms of ownership, sources of financing and key industries; to examine the changes in the volume and share of shipped goods of their own production, performed works and services in GDP between key sectors of the country. In the paper used different methods such as intellectual data analysis, statistical analysis methods, data dynamics analysis and general scientific analysis tools. In the paper shown that fixed capital investment had a sustainable trend of growth, which was based mainly on Russian sources, while foreign and joint investment remained virtually unchanged. It was not possible to trace a direct correlation between the volume of investment and the change in the share of shipped goods of own production, completed works and services in the key sectors of the economy. One of the reasons for this could be the lack of certainty about the timing for which the effect of the investment should appear, as large-scale investments do not produce immediate effects. It was concluded that the situation in the Russian economy is unstable, which does not allow to ensure a stable influx of foreign direct investment, and this, in turn, negatively affects the formation of capacity for the transition of the national economic system to a new technological system.

The stock market is unstable, but the use of machine learning algorithms allows to predict its future dynamics before spending. The most popular area of scientific research right nowadays is machine learning, which involves enabling computers to perform tasks that often require human intelligence. The purpose of this paper is to construct a model using a network of Long-Short Term Memory model (LSTM) to forecast future stock market values. The paper presents the advantages and disadvantages of machine learning for assessing and forecasting the stock market. A review of literature on the application of machine learning models in key areas of finance using methodological model assessment and data manipulation is also available. This paper focuses on the losses of the SME sector due to COVID-19 by doing a comparative study using secondary data collection between the predicted closed stock prices and actual stock prices of the BSE SME IPO index for the period from 1 January 2018 to 30 April 2021.The LSTM network of Recurrent Neural Networks (RNNs) most effective deep learning model, is used to predict stock prices. The study provides insight and direction on where lockdown has a massive impact on the stock prices of BSE SME IPOs. The authors developed a model for predicting the future value of stock in the market, the application of which gave some positive results, demonstrating the need for machine learning and how it can change the world of finance. The novelty of the study is that in India, machine learning and deep learning methods in the field of finance are used much less often than in other countries.

The famous Capital Asset Pricing Model (CAPM), widely used in practice, takes into account only the business risk associated with investments in a specific company [not the entire market (or industry)]. In practice, most listing companies use debt financing and operate at a non-zero leverage level. This means that the financial risk associated with the use of debt financing, along with business risk, must be taken into account. The purpose of this paper is to simultaneously account for business and financial risk. We combined the CAPM theory and the Modigliani-Miller (MM) theory, which is the perpetual limit of the BFO (Brusov-Filatova-Orekhova) theory. The article shows that R. Hamada’s attempt to take into account both business and financial risks has proved unsustainable, and the formulas he obtained, widely used in practice, are incorrect. The paper outlines the correct formulae that made it possible to generalize CAPM for the first time, taking into account both business and financial risk. The application of the new CAPM 2.0 model to a number of companies is considered and the difference between the results obtained within the framework of CAPM 2.0 and CAPM is demonstrated. CAPM is one of the main models [along with APT (arbitrage pricing theory) and WACC] within the income approach to business valuation. This significantly increases the value of the developed CAPM 2.0 approach, which can significantly improve the accuracy of the assessment.

In assessing the risk of investing in various financial assets, risk management focuses on the analysis of the worst possible losses (the right tail of the loss distribution). At the same time, most often, when speaking about losses, it is assumed that losses can, in principle, take on negative values (which corresponds to receiving positive profits). However, there are many theoretical studies suggesting that losses take only positive values. Many risk managers use only a portion of the sample of data that corresponds to positive losses when assessing the relevant risk measures using the statistical method or the Monte Carlo method. The purpose of this paper is to study the transformation of risk estimates of various levels of catastrophicity with such a change in the space of elementary events, and hence the law of loss distribution. The paper uses methods of analysis of financial risks of various levels of catastrophicity, including methods developed in the author’s previous papers. As a result of the study, it turned out that with such a transformation of the random value of losses, all the most important estimates are significantly transformed with the help of risk measures of various catastrophicity. The author concludes that the theoretical conclusions of the work will also contribute to a more conscious understanding of the theoretical results and the results of practical risk assessments, depending on the basis on which this assessment was made: allowing losses to accept negative values or focusing only on their positive values.

The paper is devoted to improving the methodology for conducting laboratory experiments to study the actions of taxpayers. We note that the use of standard economic methods is not enough to study citizens’ behavioral motives (in particular, the desire to evade their duties). The authors analyzed experimental methods of studying tax evasion, carried out their comparative characteristics and identified the problems of their implementation in practice. Based on the analysis of the results of previous experiments, we proved that involving students as interviewers enables us to identify and evaluate the behaviour trends of taxpayers. The research methodology is based on the use of tools and methods of comparative analysis, tabular and graphical methods of data visualization. In particular, the comparative characteristics of the form factor surveys (vignette with one profile, vignette with a double profile, single-profile association, conjugate profile, conjugate paired profile) made it possible to identify as a priority for use in laboratory tax experiments the conjugate paired profile in the form of a survey. In the resulting part of the paper, we presented the disadvantages of laboratory experiments and suggested possible options for their solution, which is an element of scientific novelty and the significance of the research’ results.

Corporate environmental responsibility (CER) plays an important role in the sustainable policies of firms and affects the behaviors of managers. For U.S. listed firms for 2010–2021, this study aims at evaluating the sustainability of investment through corporate environmental responsibility (CER) and corporate social responsibility (CSR), the complementarily or substitutability between (CER) and the CEO shareholding, and the impact on corporate financial performance (CFP).The results show that CSR efforts create a good image of the company, which subsequently enhances the credibility of its corporate environmental responsibility projects. Also, the results show the corporate environmental responsibility of U.S listed companies has a positive impact on performance. Specifically, the CEO’s shareholding serves as a mediator between corporate environmental responsibility and CFP. Moreover, the paper finds substitutability between CEO shareholding and corporate environmental responsibility, so the more the shareholding CEO is reluctant to take the risk, the more they avoid investing in corporate environmental responsibility projects. This finding will reinforce the positive effect of corporate environmental responsibility on performance. A positive relationship was recorded between CFP and the combination between CSR and CER and between CFP and the combination between CER and CEO shareholding. Taken together, our evidence suggests that CER concerns could enhance the extent of managerial learning, especially for firms experiencing greater risks. Our paper provides new evidence for the role of CER in reducing corporate risk and further confirms the importance of the corporate environment by conducting a robustness test.

The development of financial technologies in modern conditions has contributed to the active use of digital financial instruments — cryptocurrencies — in international settlements. The availability of up-to-date information on digital currency volatility will help crypto market participants predict the consequences of their transactions. The purpose of this work is to construct a new measure of the volatility of financial assets, in particular, cryptocurrencies, the euro and the direct exchange rate of the ruble. In order to obtain this measure, an analysis of known volatility measures was carried out, requirements for the measure of volatility of a financial asset were formulated, and, as a result, the volatility of the main cryptocurrencies, the euro and the direct exchange rate of the ruble, was assessed by the levels of the time series of monthly quotations of these assets in the time interval from 1.01.2022 to 1.04.2023. The scientific novelty in the paper is a reasonable new measure of absolute volatility. The main conclusions of the study are: 1) the measure of absolute volatility constructed in this paper has the dimension of the asset value and measures the part of the asset value that is generated by uncertainty in the values of its profitability; 2) Bitcoin Cash is the most volatile cryptocurrency, Bitcoin has the least volatility among cryptocurrencies; 3) the volatility of the direct exchange rate of the ruble (the price of the US dollar in rubles) is about half the volatility of Bitcoin; 4) out of competition in terms of volatility is the euro quote (the euro price in dollars) — 10% in a year and a half.

The paper is devoted to the study of the issues of determining the estimated (marginal) cost of investment projects that are implemented within the framework of the IPA. The purpose of the study is to develop scientific and practical recommendations for determining the estimated (marginal) value of real estate objects created in the framework of investment projects implemented on the basis of the IPA. The paper is relevant because current regulatory documentation does not clearly define the concepts of estimated (marginal) cost of infrastructure objects, and there are no recommendations for their assessment, which leads to distortions of the cost base for obtaining subsidies and impacts the evaluation of the effectiveness of such projects. The scientific novelty of the research consists in the development of scientific and practical recommendations for determining the estimated (marginal) value of real estate objects created as part of an investment project implemented on the basis of the IPA. The authors used the following methods of scientific research: deduction, induction and logical method. The concept of the estimated (marginal) value of real estate objects is clarified, which is based on the estimated cost of construction, taking into account a certain number of assumptions. A review of the current methods of calculating the estimated value in Russia and abroad is conducted. It is concluded that in Russia there is no single base for determining the cost of the CIW. The basic index method in the prices of 2000– 2001 significantly reduces the accuracy of calculations. The idea of forming a new dynamic system of the resource-index method, which takes into account the life cycle of a building and is based on big data of price information in construction, on the basis of which it is possible to develop a system of forecasting the estimated value of an object using machine learning methods, is prospective.

The relevance of the topic lies in the fact that the level of competitiveness of a bank in waste management will have an increasing impact on its ESG ratings in the future. The purpose of this paper is to improve waste management in a bank (mainly faulty office equipment and paper waste). However, not all banks use active management methods in waste management, so this article offers recommendations for the successful management of key indicators. The article uses data on waste from banks in Bangladesh, China, Indonesia, Kuwait, India, Malaysia, Nepal, Pakistan, Sri Lanka, the UAE, and Vietnam. The objectives of the study include: identification of the essence of the competitiveness of waste management in a bank; consideration of the types of competitiveness of waste management; assessment of the impact of blockchain technology on the competitiveness of waste management; assessment of minimizing waste management costs in a bank. A method for waste composition and waste export based on statistical analysis and a regression model. It used data about the current waste management activities of a bank. This study uses data from an annual time series covering the period from 2013 to 2021. The results of the study confirm that the problem of electronic waste of banks in Asia can be solved by increasing financing and a complete analysis of bank waste. There are points of novelty in the article: (1) the essence of the competitiveness of waste management in a bank is determined, which consists in the recycling of most waste and not in their disposal; (2) the ideas of the competitiveness of waste management are considered in Sberbank; (3) the impact of blockchain technology on the competitiveness of waste management in banks is assessed; (4) an assessment of the competitiveness of waste management in a commercial bank is given. In order to better understand the factors influencing the production of e-waste in the region, the study focuses on the significance of addressing the rising problem of e-waste in Asia and the need for better collection and analysis of waste data in a bank. The main conclusion is the need to recycle waste and increase recycling costs in the future, which is the most environmentally friendly option compared to incineration.

Currently, many central banks have begun to develop, study and introduce central bank digital currencies (CBDC). Due to the lack of sufficient experience, potential problems and risks’ research that can stimulate such financial innovations is relevant. The paper analyzes the projects for the creation of CBDC. The purpose of the paper is to identify unresolved aspects of the application of CBDC, and specific tasks include identifying the problems of the marketing of retail CBDC and the identification of the risks generated by them. The authors use general and special research methods, including comparative analysis and systematization. The article examines the prospects for digital ruble circulation in the Russian Federation. The use of CBDCs opens up enormous opportunities for the development of the digital economy, but their actual deployment is replete with risk. The article identifies the risks of the third form of national currency: technological (including environmental), economic, financial, social and legal. The authors consider that the widespread use of CBDC implies a transformation of the activities of national central banks, including a change in the role and functions of the national central bank, and provide several possible scenarios. The authors include among the unresolved problems that require solutions for the widespread practical use of digital securities: lack of understanding of the mechanism for transferring ownership during transfers from one user to another, clear prudential regulation, and effective management of big data analytics. Furthermore, the scope of regulation of the financial intermediation sector with regard to fintech innovations has not been defined; there is no system for exchanging data between different government agencies for a timely and more accurate assessment of potential risks; and the required number of specialists is not sufficient. The research can be important for both digital money consumers and authorities when the initiative to issue digital money in Russia is implemented.

The relevance of this study is determined by the need to develop the domestic semiconductors industry in Russia, taking into account the negative effects both internal and external.The purpose of this paper is to test the hypothesis of the positive impact of the methods used by the state of financial support of domestic companies to acquire advanced technologies in a specific area in the context of a lack of funding and the significant lag of the national semiconductor industry in the world’s leading countries.The target of this study is the analysis of possible tools of state support, including subsidies and grants, and methods of their application for the creation of competitive industry of domestic semiconductor production.The key methods used in this study include the collection and processing of statistical data, their comparative analysis, as well as the elaboration of the regulatory framework on tax regulation in this sector of the economy.The main methods applied in this study are data collection and processing, comparative analysis, and the development of a regulatory framework for tax regulation in this sector of the economy. The authors analyzed the semiconductors industry in the world, including the production of microprocessors and other semiconductor components. The situation in countries such as China, USA, Japan, Europe, Taiwan, India and Russia is discussed in more detail. The main problems with semiconductor industry development in Russia have been revealed. Additionally, researchers have evaluated and outlined fields of federal budget spendings in the industry in the period of years 2022 and 2025.The scientific novelty of this paper is to identify the relationship between the measures of state tax incentives provided to the radio-electronic industry and macroeconomic indicators. Based on that authors have developed evaluation criteria of the relevance and efficiency of fiscal preferences for the analyzed industry which is considered as the result of research.It concluded that the state’s initiatives to promote the radio-electronics industry might provide Russia a chance to catch up to the world’s leading countries in this industry.

The subject of the study is to use an extensive literature review to evaluate how academic research on corporate social responsibility (CSR) is developing. The journals and papers in the ISI Web of Science, SCOPUS, and Taylor&Francis databases served as the foundation for this literature review.The purpose of the study is to highlight essential papers, referenced journals’ importance, and potential future study directions. Determinants that impact the CSR performance of an organization are governance, profitability, firm characteristics, and minimum expenditure. The impact of CSR has been measured using accounting-based market value, risk, excess return on a stock, and moral capital. All the variables are discussed with strongly supported literature and then concluded by giving a framework.The novelty of our study is that it analyses new research trends while concentrating on the CSR research frontiers.The conclusion identifies possible areas for scientists to further develop their expertise, including sustainable and responsible financing and ESG strategy.

The subject of the study is the problems of institutional and methodological-legal regulation of the contract system of public procurement.The relevance of the problem is due to the fact that there have been changes in the structure and composition of forms of contract activity as a result of the 2017 adoption of amendments to Law No. 44 in the dynamics of the distribution of order placement procedures.The purpose of the study is to develop a scientific methodology for calculating the effectiveness of procurement activities on the basis of a comprehensive assessment of the effectiveness of public procurement on a contractual basis, plan-fact analysis, and the implementation of the principles of compliance control in public procurement management.The paper uses methods of statistical and comparative analysis, generalization, classification and valuation. The paper shows that the present disadvantages of institutional regulation of procurement processes have a negative effect on their effectiveness, requiring improved oversight of public procurements as well as analytical and methodological support. The authors suggested that the principles of compliance-control of public procurement management be applied on a contractual basis in order to increase the level of credibility and legality of activities conducted in procurement. The author’s vision of the content of the methods of calculating the performance of procurement activities on the basis of a comprehensive evaluation of the effectiveness of public procurements on a contract basis is presented. For the collection of data for plan-fact analysis, their systematization for further calculation of performance indicators of public procurement on a contractual basis, a specialized form “Data Summary for Plan-Fact Analysis of Procurement” is proposed. If the procurement proposals presented in the study are implemented, they will increase the efficiency of the Russian public procurement contract system, the responsibility of participants in it, and the professional competence of officials.

The purpose of the paper is to develop recommendations for Russian football clubs aimed at strengthening their financial stability.The subject of the study is the UEFA financial fair play rules and their impact on the financial stability of football clubs.The relevance of the paper is confirmed by the changes taking place in financial regulation of football clubs by the UEFA and the Football Union of Russia (FUR), which are caused by the global crisis and have not yet been studied in the scientific literature, which confirms the novelty of the study. The authors’ method is an analysis of the editions of the UEFA financial fair play rules and RFC licensing rules that have been in effect since 2011, along with any violations and subsequent sanctions. The annual reports of European public football clubs, studies of consulting companies, and academic publications in this field were also considered. This paper helped identify the chronology of financial rules in football and directions for their improvement. The authors conducted a detailed analysis of financial performance of club football in Europe and Russia, taking into account the impact of the pandemic, revealed the main problems and ways to solve them based on best practices.The results of the research included recommendations for conforming to the financial requirements of international federations and FUR as well as ensuring the long-term sustainability of the Russian football industry.

The main purpose of this paper is to test the performance of GARCH models in estimating and forecasting VaR (value at risk) of the US Fintech stock market from July 20, 2016, to December 31, 2021. In addition, this study examines the impact of COVID‑19 on the risk spillover between the adequate VaR series of the US global KFTX index and the five Fintech industries. Specifically, we compare different VaR estimates (862 in‑sample daily returns) and predictions (550 out‑of‑sample daily returns) of several GARCH model specifications under a normal and Student‑t distribution with 1% and 5% significance. The Backtesting results indicate that I‑GARCH with Student‑t distribution is a good model for estimating and forecasting VaR of the US Fintech stock market before and during COVID-19. Moreover, the total connectedness results suggest that global and each Fintech industry increases significantly under turbulent market conditions. Given these considerations, this paper provides policymakers and regulators with a better understanding of risk in the Fintech industry without inhibiting innovation.

The rapid nature of the modernization of monetary turnover, accompanied by geopolitical risks against the background of post-pandemic economic recovery and the regionalization process, no longer just arouses the discursive interest of society, but becomes an indispensable condition of the new reality. The process of money turnover transformation by introducing digital currencies into circulation in the wave of digitalization among world powers lagging behind the evolving environment of the cryptocurrency industry is developing into a process of formalization of metaverses and penetrates deeper into the socio-economic reality. The problem of the Russian practice of developing the payment environment consists in its catching-up character, caused by the spontaneous formation of the digital society, resulting in the expansion of the scope of alternative finance outside the legal field. The purpose of the paper is to determine the inherent attributes of the digital trusted environment necessary to ensure digital ruble turnover, based on an empirical study of society’s perceptions about the prospects for using the digital form of the national monetary unit by representatives of various generations. We used systematization, grouping, comparative and content analysis, surveys, and the quota method to achieve the paper’s purpose. The survey involved 35,327 residents from different regions. As a result, the authors revealed the low level of readiness of society for the introduction of the digital ruble as a substitute for cash and cryptocurrency. The paper focuses on the need for an integrated approach to the disclosure of the digital ruble’s value and benefits, which contributes to its successful launch and promotion in the market. The results of the research highlight the importance of correspondence in the digital ruble category “digital currencies”, and also the impossibility of making incorrect decisions in the transformation of money turnover, which leads to the growth of risks of digital inequality, the clash of interests of certain groups of the population in the prevailing behavioral patterns in the form of a cautious attitude to digital finance with insufficient financial literacy.

At the present time, performance audit has become a major work responsibility of auditing institutions in the world. In China, as the reform of national governance and financial modernization progresses, performance audit has received increasing attention, but it has still not been truly implemented. The purpose of this paper is to identify that influence the development of performance auditing in China. The relevance of the problem is evidenced by the growth of research in the field of public audit and performance audit in recent years. The author reviewed recent publications on this topic by Russian and Chinese authors. In the paper apply the research method to analyses keywords in the State Council Audit Report of China 2011–2021. A wide range of methods of information analysis is used. The results of the research lead to the following conclusions: the basic orientation of China’s performance audit is to supervise and serve the country’s governance; the audit field is inclined to the environment, resources, people’s livelihood, etc.; the audit content transitions from fund management and use to policy implementation and project management; audit evaluation standards increase equity and environmental friendliness on the basis of “3E” (economy, efficiency, effectiveness); audit methods highlight modern tools such as big data auditing. The attention and promotion of performance audit by the legislative authority is an essential requirement for its growth in China.

The inclusion of the most dynamically developing countries in global value chains marked a gradual shift in the center of economic gravity in the world economy from the West to the East. In an effort to maintain their leading positions in the global monetary and financial system, today Western countries, led by the United States, create artificial barriers for developing countries to access the global financial architecture, which contradicts the logic and laws of the free market and increases geopolitical tensions. The purpose of the paper is to reveal and systematize the main factors contributing to the dysfunctionality of the modern world monetary and financial system and develop conceptual approaches to increasing its stability, taking into account the capabilities and interests of the most dynamically developing countries. The following methods were used to achieve the paper’s goal: scientific abstraction (to generalize the crisis-generating factors of the modern world monetary and financial system); structural and functional analysis (to justify the need to form a “non-dollar” interregional (transcontinental) monetary and financial space and the possibility of the BRICS countries creating their own payment and settlement infrastructure and international liquidity); deduction and comparison (to identify problems that hinder China’s promotion to the role of the leader of the new world economic order and disclosure of contradictions in the monetary and financial regionalization of the single European market). A comprehensive approach has been developed to form and ensure the functionality of the interregional (transcontinental) monetary and financial space of the BRICS countries, including measures aimed at countering the institutional monopolization of the functions of global financial intermediation by defining their own norms, rules and standards for the functioning and regulation of interregional financial markets by the BRICS countries. From a practical point of view, this approach can be used by the government bodies of the Russian Federation and the Bank of Russia to develop a new strategy and tactics for the country’s international monetary and financial cooperation in the face of tougher external sanctions, as well as to develop appropriate measures aimed at ensuring Russia’s financial and economic sovereignty.

During the period of monetary policy easing in Russia, mortgage refinancing became popular, which involves the issuance of a new mortgage housing loan to repay an earlier loan on more favorable terms. There is a regionally heterogeneous refinancing of mortgages at lower mortgage rates. The purpose of this paper is to quantify the impact of monetary easing on mortgage refinancing and household consumption for groups of Russian regions. Econometric methods (vector autoregression models on panel data, estimated by Bayesian methods) and multivariate clustering (hierarchical analysis, k-means method) were used in the paper. Based on the impulse response functions, it is shown that during the period of monetary policy easing, the greatest effect of lowering mortgage interest rates on refinancing is typical for groups of regions with high- and middle-income levels, a liquid housing market, and a developed mortgage market. It is proven that refinancing is involved in the transfer of the effects of monetary policy to consumer spending and consumer lending, and this transfer is heterogeneously. Refinancing in low-income regions stimulates consumption and consumer borrowing. In regions with an average and high level of per capita cash income, after refinancing, consumer spending and consumer loans are temporarily reduced. The obtained results can be explained by the different types of financial behavior of borrowers in the use of top-up mortgage refinancing, depending on the level of their cash income. Based on the results of the study, the hypothesis about the heterogeneity of the refinancing channel in the Russian regions was confirmed. The scientific novelty of the study consists in the development of a methodological approach to the study of the refinancing channel and its approbation on Russian regional data.

At present, financial report fraud is becoming more frequent with the continuous development of the world economy. How to provide early warning before financial report fraud occurs has become more and more important. The purpose of this paper is to set up a logistic regression model, namely an ex-ante warning model, which can provide early warning before financial report fraud occurs, by comparing the governance of financial report fraudulent companies and non-fraudulent ones. First, this paper uses the “fraud triangle” theory as a framework to find the relevant proxy variables for fraud opportunities, fraud pressure, and fraud rationalization. Second, the study uses T-test, Mann-Whitney test and chi-square test to identify statistically significant differences among these proxy variables. Hypotheses were made about the relationship between the coefficient values and the presence of false behavior in the reports. Finally, an ex-ante fraud warning model is set up from the indicators with statistically significant differences, meanwhile the hypotheses regarding the behavior of the indicators and their impact on the model are tested. The overall accuracy of the ex-ante fraud early warning model developed in this paper is 70.9%. How to further debug the model to make the screening of fraudulent companies more accurate is the difficulty and further research direction of the article.

Over the past few years in Russia and the world there has been a rapid development of goods and services e-commerce. Therefore, an issue of inflationary consequences of the process of e-commerce growth is topical. The subject of this research is the impact of the development of e-commerce on inflation. The purpose of the paper to identify key theoretical mechanisms of e-commerce development influence on inflation, in addition to empirically verify the presence of the de-inflation effect on Russian data. The paper bases on methods of systematization, descriptive analysis, panel data econometric analysis. Also systematize basic mechanisms of e-commerce influence and provide empirical evidence for the disinflationary effect of ecommerce in Russian regions as a result of the study. The study concludes that e-commerce causes predominantly downward pressure on prices and inflation. Econometric analysis confirms this effect on Russian regions data in 2014–2020. The scientific novelty of the research lies in systematization of channels of e-commerce influence on various spheres of economy and confirmation of disinflationary effect of e-commerce using Russian data. The study’s recommendation is to consider the aspect of price reduction pressure in Russia’s monetary policy during the further spread of e-commerce.

This research paper aims to investigate the monetary transmission in India through bank lending channel, to know whether a change in monetary policy affects bank loans or not. A balanced panel data of 50 commercial banks covering a timeframe of 11 years from 2009 to 2020 has been undertaken for the research methodology. The outcomes of the dynamic panel have been considered by using the Generalized Method of Moment developed by Arellano Bond Blundell and Bover estimator. The result indicates that channel of bank lending has improved banks’ resilience to monetary shocks. This paper finds the significance of bank characteristics like size, liquidity, and capital which have a substantial impact on bank lending. This research study concludes that repo rate, cash reserve ratio and weighted average call rate are imperative instrument of monetary policy transmission. Banks with small size, capital, and liquidity are more sensitive to any variation in monetary policy as compared to large banks.

In the context of growth trends in the scale and diversification of business, the internal costs of companies with a complex holding structure are also increasing. Solutions that improve the efficiency of settlement systems are particularly relevant and significant. Therefore, the paper is devoted to the problems of building settlement systems that minimize the negative impact of certain factors reducing the economic efficiency of calculations. The purpose of the study is to develop methodological foundations for rationalization the holding’s settlement system based on clearing obligations. The tasks of this paper are set as follows: to propose methodological tools for the reorganization of the system of intra-holding settlements; to test the proposed recommendations for the rationalization of the settlement system in holding structures. According to the results of the study, the authors systematized a set of factors that determine the effectiveness of the system of intra-group settlements. It is proposed to attribute the number of payment transactions and the volume of payment turnover to the quantitative factors of the settlement system efficiency. Qualitative factors of the settlement system efficiency are associated with the consolidation of financial information, the degree of automation of settlement processes, and the flexibility of the settlement system. The authors used the Ward method to build a cluster structure of the holding based on the analysis of payment turnover of pairs of companies, statistical methods of quantitative and qualitative assessment of the effectiveness of the holding’s settlement system. The scientific novelty is expressed by the fact that the paper offers methodological tools for reorganization the system of intra-holding settlements. A methodology for rationalization the holding’s settlement system based on clearing obligations, universal in use by holding-type companies, has been developed and its approbation has been carried out. The conclusions based on the results of the study form recommendations for changing some aspects of the holding’s activities in accordance with the results of the modernization of the holding’s settlement system. The method of rationalization of the system of intra-holding settlements proposed by the authors has versatility in application and can be used in solving management tasks within any holding.

The subject of the paper is to study of the theoretical literature on evaluate the effectiveness of the value added tax (VAT) mechanism, and identification of criteria for the analysis of the VAT mechanism. The purpose of the paper is to investigate methods for evaluating the effectiveness of VAT mechanism and, on that basis, to evaluate the VAT gap in Uzbekistan and the factors influencing it. The importance of the paper is confirmed by the significant contribution of the tax to the sufficiency and stability of budget revenue in countries with consumption tax mechanisms. A mathematical approach based on the C-efficiency (Collection efficiency) ratio is used to calculate the VAT gap. This model evaluates the discrepancy between actual VAT income and the maximum amount of tax revenue that could be obtained by taxing all (and only) final consumer spending in the economy. The novelty of the paper is justified by adaptation of model to the specification of VAT structure of Uzbekistan and recent data to estimate VAT gap. The research concluded that Uzbekistan’s VAT mechanism is twice as inefficient as its ideal mechanism. Estimates for 2016 and 2020 indicate that on average a quarter of potential VAT revenue is not collected due to Compliance Gap, while Policy Gap is responsible for over a third of the ideal loss of VAT revenue. In order to improve compliance, it is recommended to optimize the collection and control systems in addition to policy modifications that include reforms of tax objects, subjects, rates, incentives, and other tax elements.

The authors of the paper estimated infrastructure’ impact to economic growth, which affects the regional balanced development. The relevance of the research is substantiated by the growing dynamics of investment of public funds in infrastructure development of regions. The purpose of the research is to determine the impact of infrastructure investments on economic growth and balanced regional development. The objectives of the research are: assessment of the impact of investment in infrastructure, assessment of GRP, price index in the regions, assessment of the ratio of population by regions of Russia with average per capita incomes, wages, investment in infrastructure, renewal of fixed assets and assessment of parameters for the balanced development of regions. The authors used statistical research methods (panel data, regression analysis) to identify cause-effect relationships in the process of growth and balance of the regional economy. The scientific novelty of this paper is the identification of disproportions in development of regions in comparison with the contribution of infrastructure to the regional economy. The results suggest that the volatility of infrastructure investment across regions remains high, with the contribution of infrastructure to economic growth and balanced development (p-values from 0.6363 to 0.9552). The authors concluded that the importance of infrastructure investments is one of the most important factors in achieving socio-economic development of the region. Infrastructure investment needs to be supported to reduce regional imbalances.

The subject of the paper is the activity of managers of Russian investment funds. The aim of the paper is to determine the possibility of using widely applied abroad methods of assessment of the managers’ diving abilities in the Russian practice, adaptation to the conditions of the Russian market of the three — factor Fama-French model. The methods of analysis and synthesis, quantitative assessment, including in relation to the study of the assessment of the portfolio managers picking abilities, are used as the main research methods. The relevance of the research is to make proposals on the transformation of the Russian approach to assess the performance of collective investment fund managers and its subsequent practical use. The article presents the results of a statistical assessment of the effectiveness of the activities of Russian managers of open-end investment funds shares from the perspective of micro-forecasting. According to the results of the research, conclusions are drawn that both the multifactorial Fama-French regression and CAPM, traditionally used in foreign practice, tested on the data of the Russian stock market, have sufficient predictive abilities and allow to obtain statistically significant estimations of variables and finally can be recommended for practical use in Russia. The novelty of the research consists in the development of the author’s modification of the three-factor Fama-French regression (a model with the SPX-factor), which allows to obtain better regression factors estimations in comparison with the basic model, more accurately explains the process of excess returns generation of Russian openend investment funds and can be recommended for practical use. The result of the statistical analysis is the conclusion that the processes of portfolio management of Russian investment funds in 2009–2019 were characterized by a lack of managers’ skill for successful picking, the profitability received by the funds was more ensured by random factors.

The relevance of the research is defined by the promotion of food security improvement for Russia and the importance of government regulation in this process. The purpose of the paper is the hypothesis verification on the positive impact of the revealed methods in the government tax regulation on the national agricultural industry development in conditions of import substitution policy with further increase of food security level in the country. The task of the paper is the analysis of government regulation methods for the development of agricultural sector. Key methods of the research are the collection and analysis of statistical data, their comparative analysis, the study of normative data base in tax regulation of agricultural sector and other documents related to the food security of the country. Authors analyze the dependence of national agricultural industry on import components. Based on that the main problems of food security in the country are revealed including the low seed fund, the lack of breeding stock, the lack of veterinarian vaccines and other medicine, weak investments in fixed capital and productive capacity, the lack of research institutes and laboratories in this sector of economy. In accordance with these reasons, authors consider the tools of government regulation in the agricultural sector of economy including the tax stimulation, grants and subsidies, preferential loans and other mechanisms, which could support the effective development of national agricultural complex. The analysis of statistical data by Federal Tax Service of Russia has indicated the effectiveness of government tax stimulation of agricultural producers, which is proved by the growth of tax revenue from this category of taxpayers, despite their decrease. Researchers indicate the development of government tax regulation measures by targeted use of tax tools for the target of a decrease in the loss of tax revenue and increase investments in fixed capital in the agricultural sector.

The relevance of the paper is defined by significant impact of financial shocks on various sectors of the Russian economy, which undermines the stability of the country’s economic system. Therefore, it is essential to study the sources of financial shocks, the mechanisms of their distribution and ways to manage them. The purpose of the paper is to specify the impact of financial stress on industrial stress in the Russian economy and to determine the role of monetary policy in their interaction. The novelty of the research consists in the development of a methodology for constructing financial and industrial stress indices, the establishment of the mechanism of their interaction under different monetary regimes of the central bank. The construction of stress indices is carried out on the basis of the selected indicators of the financial market and industrial sector of the economy, the use of the principal component analysis for their aggregation, and mathematical transformation of the first principal component. The direction of interaction between financial and industrial stress in the Russian economy is determined using the Granger causality test. The construction of autoregressive distributed lag models (ARDL models) allows estimating the impact of financial stress, as well as monetary policy parameters (the scale of lending by the central bank to commercial banks and the deviation of the central bank’s key rate from the market rate borrowing) on industrial stress in the Russian economy. The research results in estimates of the strength of the relationship between financial and industrial stress in the Russian economy in two periods: before the change in the monetary regime (2006 — end of 2014) and after the change in the monetary regime (end of 2014–2019). It is concluded that in the first period the impact of financial stress on industrial stress was faster and stronger. In the second period, the weakening and distancing of this influence in time is explained by the change of the monetary regime of the Bank of Russia, which indicates an increase in the effectiveness of the monetary policy instruments of the Bank of Russia to counter “financial contagion” of the industrial sector.

In the context of the globalization of the world economy, the task of ensuring the transparency of information about the company’s financial position remains relevant. The purpose of the paper is to recommend the transformation the economic entity principle in the doctrine of “piercing the corporate veil” formed in international legal practice, the essence of which is to identify the ultimate beneficial owners of a business. To achieve this purpose, the following tasks are performed: to identify the scope of the “corporate veil” concept in international practice, to establish the relationship of the described issues with the conceptual framework of international financial reporting, and also to propose ways to overcome the insufficiency of the principle of economic entity to ensure the transparency of financial reporting in the current economic conditions. The object of the research is represented by a set of economic and legal interpretations of the “economic entity” and “corporate veil” concepts in their historical development. The subject of the research is the impact of the “piercing the corporate veil” doctrine on the composition and structure of consolidated financial statements. The authors conducted a comparative analysis of legislative acts in different countries of the world aimed at increasing the transparency of financial reporting and the availability of information about beneficial owners of the business. The empirical basis of the research involves materials of court cases and journalistic investigations related to the veiling of the company’s ownership structure, as well as the published reports of international, multinational public companies. The authors have identified the stages and described the logic of transformation of the principle of economic entity in the global accounting practice. The authors have developed recommendations for the application of the principle of additional liability to ensure transparency and reliability of information about the financial position of the company in the current economic conditions. The results of the paper can be used in the preparation of corporate legislation and the development of international and national financial reporting standards.

The subject of the paper is the “green” projects of companies whose production activities are accompanied by a high level of anthropogenic emissions. The purpose of the paper is to study the features of analysis and practical application of the tools for financing “green” projects (hereinafter referred to as the tools). The relevance of the article is determined by the need to solve the problems of implementing in practice the provisions of Russian legislation on the development of “green” economy in the context of the need to develop and finance “green” projects by members of the National ESG Alliance. The scientific novelty of the paper is to develop the theory of development and practical use of tools, taking into account the peculiarities of their analysis and application. The paper uses theoretical and practical methods to the analysis of scientific publications and simulation results. The research is based on the provisions of normative and legal acts, monographs and scientific works devoted to the analysis, development and financing of “green” projects. Based on the research carried out in the article, the following results were obtained: an analysis was made of the specifics of the requirements for financing “green” projects; clarified the features of the classification of climate risks and formulated an approach to their transformation into corporate credit risks; the composition of the instruments is determined and their interpretation as controlled aggregates is proposed; the operator model of the units was developed, proposals for its practical use were made. The authors recommend that companies with a commodity product range use the operator model and cognitive maps developed on its basis to analyze existing and develop new tools. In the future, “green” companies are encouraged to use the tools obtained on the basis of the operator model and cognitive maps.

In this paper, we have constructed a VAR model to identify and assess the impact of real interest rate shocks, real estate demand, oil prices, uncertainty, and aggregate business activity on residential real estate prices in Russia. The relevance of the research is due to the following: the dynamics of real estate prices determines the consumer and investment behavior of households, and serious fluctuations in real estate prices lead to adverse consequences in many areas of life, so more and more researchers are asking questions about the presence of bubbles in the real estate market, which can be dangerous to the stability of the economy. In addition, a sharp increase in the cost of housing in Russia in 2020 is an open question for researchers. Our goal is to determine what factors caused the rise in real estate prices in Russia in the time interval from the Q1 of 2000 to the Q2 of 2022. A VAR model with a Cholesky decomposition was used for the evaluation. Several specifications were considered with the inclusion of the real oil price as an exogenous variable and a set of endogenous variables: real GDP, real interest rate, uncertainty index and housing price index. The main conclusion of the paper is that the housing market is sensitive to identified macroeconomic shocks, and a decrease in the interest rate leads to an increase in demand and real estate prices. The estimate of the long-term elasticity of housing prices for oil prices was 0.35, the dynamics of oil prices explained a significant proportion of the variation in real estate prices, but the predominant role in housing price fluctuations is given to housing demand shocks. The housing demand shocks in Russia itself had a negligible impact on GDP.

The priority goal of the country’s top leadership is to ensure sustainable socio-economic development of all constituent entities of the Russian Federation and improve the quality of life of their population. In a challenging geopolitical situation, achieving this goal is difficult. Only under the condition of an effective system of public administration is it possible to solve the main socio-economic problems in the Russian regions. This requires linking the size of collective incentive payments to regional civil servants to the achieved level of socio-economic development of the constituent entities of the Russian Federation. The foregoing predetermined the relevance of the research topic. The purpose of the paper is to substantiate the bonus calculation mechanism for the executive branch employees of the Russian regions, depending on the assessment of their ability to work as part of a team to achieve results, i. e. to perform their duties to a high standard. This involves the use of modern methods of economic and mathematical modeling, designed in this case to ensure the objectivity of assessment of the collective and individual performance (efficiency) of regional civil servants. This is the main scientific novelty of the paper. The practical implementation of the mechanism of collective and individual incentives for regional civil servants will create the preconditions for increasing the wages of such employees in all regions of the Russian Federation. Thus, the coordinated actions of civil servants from different ministries and departments of the Russian subsidized regions in the future will help increase their financial security and transition to the group of donor regions, and ultimately will create the possibility of increasing budget expenditures on wages for the executive branch employees.

The Indian banking sector has reached greater heights in recent days because of adopting and involving in the Digitalisation of banking. Though India is moving forward with digitalisation process, our nation faces several setbacks and opposition, which has to be crossed specifically in the rural banking system. The current research work has attempted to examine these challenges and setbacks which are found commonly in rural banking digitalisation. This paper aims in analysing the impacts and influences of Digitalisation in rural banks of Madurai city, Tamil Nadu. Moreover, the study is surveying multiple influencing factors like literacy rate, education qualification, income quality, gender equality and socio-economic position. Finally, some suggestions and conceptions to increase the maximum reach of knowledge and importance regarding the Digitalisation of banks in rural regions are suggested to the government and banking sectors. Regional based loan schemes and mechanisms and procedures must be encouraged by banks. Income assessment, repayable capacity in the rural areas of Madurai has to be initiated. The study focuses on research-based on quantitative tools. The Study aims in explaining the various positive outcomes of bank digitalisation via digital banking and financial inclusion here in India. The present study provides the awareness of the digital world and the advantages of adopting them in rural India for various banking services. The paper concludes that there is a need for digital establishments and digital banking in most rural areas all over India.

Influenced by the governmental policy of national economy decarbonization and greening fundamentally new institution of green finance is currently developing in Russia. One of the key areas for the development of green finance is industrial waste disposal. The aim of the paper is to determine the efficiency of green financing of industrial waste utilization projects in Russia. The methodological basis of the paper consists of domestic and foreign scientific articles in the field of green financing and waste disposal, regulatory legal acts of the Russian Federation, as well as Rosstat data on the volume of industrial waste disposal. As a research method, the authors applied an analytical approach to systemize green finance concept definitions, and analyzed foreign experience of using green financial instruments in the industrial waste management industry. The article represents the content analysis of the Russian taxonomy of green and adaptation projects, as well as an assessment of the industrial waste utilization volumes that can potentially be achieved due to the implementation of projects within the framework of taxonomy areas. The results of the analysis show that through the implementation of green and adaptation projects, it is possible to additionally dispose of about 91 million tons of industrial waste, or 2.5% of the total volume of waste generated. Such a low recycling rate is a result of the limited amount of industrial waste types, the utilization of which is included in the taxonomy. It is necessary to expand the list of industrial waste, the disposal of which can be recognized as an independent project or a criterion for the implementation of projects within the framework of the taxonomy.

The aim of the research is to identify trends that set the agenda of the structural reforms of OECD countries, as well as of the organization’s partner countries, in the context of the place of financial sector reforms in it.The authors apply the following methods: content-analysis of sources, monitoring of directions and instruments of economic policy in the financial sector, analysis of approaches used by international organizations in order to determine reform priorities (benchmarking), and decomposition of the components of the financial sector reform agenda. The paper shows that the agenda of financial liberalization, formulated in the 1970s, is mostly exhausted, although a certain gap remains between countries with developed and emerging markets in terms of the financial liberalization index. Financial regulatory reforms focused on the goal of building a more resilient global financial system, formulated in the aftermath of the 2007–2009 crisis, are affecting all countries and are also ending. Reforms are now coming to the fore, focusing on areas of the structural transformation agenda such as inclusive growth and an environmental perspective.The paper concludes that the main components of financial reforms in an inclusive context are financial inclusion, financial and digital literacy. In terms of the environmental agenda, the countries are focusing on the tasks of directing financial resources to the implementation of the UN sustainable development goals, introducing ESG investment principles for financial institutions, and developing and implementing principles for issuing green financial instruments.

The subject of the study is to evaluate the contribution of strategic asset allocation to the variability of Moroccan pension funds performance. The aim of the paper is to identify the role of active management factors, namely tactical allocation and security selection, in generating a performance surplus compared to strategic allocation. The relevance of the study is justified by the need to identify the sources of performance creation in order to face the commitments of Moroccan pension funds and to compensate for the decline and volatility of asset returns. The article addresses, through the use of simple linear regression methods, the relative importance of strategic asset allocation in explaining the variability of the performance of Moroccan pension funds. It introduces a scientific novelty through the use of the “performance attribution” method. The conclusions of the paper confirm the main role of strategic asset allocation, which varies according to the size of the fund, the asset classes, and the risk aversion of the manager.

The purpose of this paper is to examine how the introduction of the pan-India electronic trading portal (eNAM) impacted the information transmission and price discovery in informationally linked markets of India for agricultural commodities. We have applied the information share and component share methods using daily data of five agricultural commodities from 2005 to 2019. This paper offers two findings, first; evidence shows that commodity stock prices have more price discovery as compared to the market prices. Whereas market prices also generate a significant price discovery, but its volume is less. Second, market prices adjust more quickly than commodity stock prices to correct the disproportion between both markets. This scenario is more evident post eNAM era. Conclusions from this study can be used to understand the information flow and would be helpful to academicians, practitioners, policymakers, or business players of commodity markets.

The aim of the paper is to assess the debt sustainability of the budget system of the regions of the Northwestern Federal District (NWFD) of Russia and establish differentiated values of the budget constraints. The author uses methods of comparison and grouping, correlation and cluster analysis. The author’s methodology based on the methods of multivariate statistical analysis made it possible to include indicators that have the nature of leading indicators in the assessment, evaluate the integral indicator of debt sustainability, and determine the limit values of these indicators. Approbation of the author’s methodology for assessing the debt sustainability of the budget system on the statistics of the NWFD regions allowed dividing the regions into three clusters according to the types of debt sustainability and determining the threshold values of indicators for each cluster. The research results substantiate the need to reduce the high debt burden for 70% of the NWFD regions. The results indicate that the regions with a high level of debt sustainability include St. Petersburg, Leningrad and Kaliningrad regions. The integral indicator of debt sustainability of these regions is greater than one and the regions are well grouped according to six indicators of debt sustainability into a group that is homogeneous in terms of characteristics. The Republic of Komi, the Republic of Karelia, and the Arkhangelsk and Pskov regions have a low level of debt sustainability: the standard limiting values for the “debt-to-GRP ratio” indicator of the regions is less than 5%, and the “debt-to-revenue ratio” indicator — less than 42%, the value of all indicators of debt sustainability exceeds the values of the cluster centroids. For these regions, the author recommends pursuing a targeted budget policy with a mandatory debt reduction to the level of threshold values for the indicators of the regions of this cluster. The paper concludes that it is necessary to reduce the debt burden of most regions of the NWFD, as well as to establish differentiated values of budget constraint on public debt, taking into account the indicators of socio-economic development of these regions.

This paper aims to restore some parameters of functionals using cubic splines to forecast rare events in finance and economics. The article considers the mathematical method for recovering an unknown function from many different functionals, such as the value of a function, the value of its first derivative, second derivative, as well as a definite integral over a certain interval. Moreover, all observations can occur with an error. Therefore, the author uses a method of recovering a function from different functionals observed with an error. The function is restored in the form of a cubic spline, which has a value-second derivative representation. The optimization problem consists in minimizing several sums of squares of the deviation at once, for ordinary values, for the first derivatives, for the second derivatives, for integrals, and for roughness penalty. For greater flexibility, weights have been introduced both for each group of observations and for each individual observation separately. The article shows in detail how the elements of each corresponding matrix are filled in. The appendix provides an implementation of the method as a FunctionalSmoothingSpline function in R language. Examples of using the method for the analysis and forecasting of rare (discrete) events in the economy are given. Formulas for calculating the cross-validation score CV (α) for the automatic procedure for determining the smoothing parameter α from the data in our problem of recovering a function by many functionals are shown. The paper concludes that the presented method makes it possible to analyze and predict rare events, which will allow you to prepare for such future events, get some benefit from this, or reduce possible risks or losses.

The object of the study is the consolidated taxpayer group regime (CTG) introduced in Russia in 2012 for the largest groups of companies in which a group of companies is treated as a single entity for tax purposes. The aim of this paper is to investigate the reasons for the decision to cancel the CTG regime starting from 2023. The method of the study is an analysis of the available official reports, scientific publications and officials’ statements on the topic. We have also compared the initial objectives of the CTG regime introduction with the criteria by which the regime was further evaluated. In the paper we show that the main reasons for criticizing and abolishing the CTG regime do not correspond to the initial goals of its introduction. In the result, we found that the reasons for criticism stem from the fact that the CTG mechanism does not always allow the Russian regions to achieve predictability of their budgets and prevent them from diminishing. In prospect, this experience should be taken into account when making the decision on the future of the CTG regime to avoid a disappointment of the ‘losing’ regions.

With the development of the financial industry market, China’s attention has been drawn to the role of insurance and economic development in the insurance industry. The aim of the paper is to determine the impact and development of the insurance industry of the regional economy; formulate an appropriate policy for the insurance industry. The tasks of the study are to analyze the contribution of the insurance industry to the economic development of China and the impact of property and life insurance on economic growth in the region. The author applies methods such as literature analysis and empirical research. Reference samples selected for the study form a theoretical basis. The paper defines the study model, study variables, and statistics. Based on the research on the economic growth theory, the author uses the endogenous economic growth model to conduct empirical research and test the data of various regions in China from 2013 to 2019. The author uses statistics to conduct empirical analysis and report research findings and interprets empirical results using comparison methods and graphs. The study reveals that life insurance and property insurance are conducive to the steady growth of China’s economy, reduce economic risks, promote the development of investment and exports, and promote economic growth. The development of the insurance industry has realized the collection of funds and supported the development of regional industries, and has improved the efficiency of the use of funds. The author concludes that the development of policies of the insurance industry in different regions and the development of the adaptive insurance business are more conducive to economic stability and growth. The findings of the study can be applied to countries with different economic development by region, such as Russia.

The paper aims to assess the scope, effectiveness and key instruments of monetary policy in advanced and emerging markets during the first wave of the COVID-19 pandemic. The methodological basis of the study was the reports of the central banks of the sample countries and the data of international organizations and financial market participants on monetary policies. The author assesses the scope of financial support for the economy by the central banks of the largest advanced and emerging markets during the crisis, including the size and share of quantitative easing in its total volume. The study identifies and characterizes the main groups of monetary policy measures during the COVID-19 pandemic, and also shows the monetary policy differences of advanced and emerging economies during the pandemic. The paper highlights larger direct financial support from the central banks of advanced countries. The difference in monetary policy instruments is that advanced economies use traditional monetary policy measures while emerging economies widely apply unconventional monetary policy instruments, primarily quantitative easing. The article presents a preliminary assessment of the effectiveness of monetary policy in China and Russia. The author concludes that the consequences of the monetary policy pursued by advanced countries in 2020 may lead to long-term stagnation in these countries and the rapid recovery of emerging markets due to the inflow of speculative capital from advanced countries. The study provides a post-pandemic forecast of the general direction of monetary policy and its driving factors. Enormous direct financial support, primarily through quantitative easing, from the central banks of advanced countries in 2020 had a positive impact on the economy in the short run, but the long-term consequences of such policies require further research.

In recent years, expectation distortion risk measures have been widely used in financial and insurance applications due to their attractive properties. The author introduced two new classes of financial risk measures “VaR raised to the power of t” and “ES raised to the power of t” in his works and also investigated the issue of the belonging of these risk measures to the class of risk measures of expectation distortion, and described the corresponding distortion functions. The aim of this study is to introduce a new concept of variance distortion risk measures, which opens up a significant area for investigating the properties of these risk measures that may be useful in applications. The paper proposes a method of finding new variance distortion risk measures that can be used to acquire risk measures with special properties. As a result of the study, it was found that the class of risk measures of variance distortion includes risk measures that are in a certain way related to “VaR raised to the power of t” and “ES raised to the power of t” measures. The article describes the composite method for constructing new variance distortion functions and corresponding distortion risk measures. This method is used to build a large set of examples of variance distortion risk measures that can be used in assessing certain financial risks of a catastrophic nature. The author concludes that the study of the variance distortion risk measures introduced in this paper can be used both for the development of theoretical risk management methods and in the practice of business risk management in assessing unlikely risks of high catastrophe.

The Global Depository Receipt (“GDR” or “DR”) is a structured financial instrument denominated in foreign currency and Indian companies issue equity shares/securities underlying the GDR to international investors. Many companies have used GDRs for manipulative and fraudulent practices and the Indian regulator, SEBI has penalised them. This paper aims to evaluate the legitimacy of the GDRs and malpractices associated with them and to find if there is any need for reform in the GDR Scheme, to see if the GDRs are beneficial to the economy or are inherently manipulative instruments and looks at the need to reform the laws governing GDR. The authors have employed the methods, literature review and empirical research. The authors have conducted empirical research of the participants in the Indian GDR industry in April and May of 2021 by way of an online Questionnaire and unstructured telephonic interviews. The study results in the author’s conclusion that the GDRs are legitimate instruments but the participants abused the Scheme and led to malpractices. The authors failed to conclude about the need for reforms in the GDR laws. The paper recommends the suitable amendment of the DR scheme with an intention to plug its loopholes and allow it in foreign jurisdictions with the highest compliance requirements while keeping in mind the cost of such compliance.

The authors study the development of the oil and gas industry and assess the financial efficiency of the use of renewable energy sources, which determine the relevance of the research topic. The purpose of this work is to study the effectiveness of the development of the Russian energy sector and its contribution to the world economy. The main question to which this article should give an answer is that how the Russian power industry will develop in corresponding to the global trends in energy consumption. This paper uses a method for finding the parameters of the efficiency of renewable energy sources using exponential smoothing. The paper uses data from the analytical report of British Petroleum and the Bloomberg system for the period from January 2012 to December 2019. The result of the study shows an improvement in the accuracy of the predicted values, while previous models had higher standard error estimates. The novelty of the study is to achieve accurate results of the forecast of fossil-fuel consumption for 3 years ahead (the forecast accuracy is 80.5). The article concludes that while Russian oil and gas projects are very important for the Russian economy until now, renewable energy projects are more beneficial. In addition, Russia does not seem to support the global trend towards a renewable and sustainable economy. Although oil and gas prices remain acceptable, unforeseen changes in the behavior of real buyers can hinder the efficiency of the Russian economy and lead to a disruption of Russia’s economic growth if Russia does not decisively steer towards renewable energy from now on. The growth of the Russian power industry corresponds to the global trends in fossil energy consumption (while fossil prices, thus incomes keep worsening), and thus innovative solutions for enhancing renewable energies must be adopted. The article proves that many pipeline projects (South Stream, Turkish Stream, Nord Stream 2) move the Russian energy sector back to the past because they just contradict existing trends.

This research discusses various issues associated with central bank digital currency that is identified as a new form of money. This paper aims to identify the key prerequisites for the issuance of central bank digital currencies, to discuss the key characteristics of central bank digital currencies and analyze the possible impact of central bank digital currencies on the financial system. The author uses the methods of synthesis, analysis, logical method, comparison, induction, deduction. The research highlights the key principles that should be considered when making decisions on the issuance of central bank digital currency. The paper emphasizes that the issuance of central bank digital currency can be successful if it has competitive advantages over existing forms of fiat money. The research identifies the main characteristics of central bank digital currencies. The paper discusses whether central banks should pay interest on fiat digital currencies. The author notes that the impact of central bank digital currencies on the financial system is expected to vary in different periods of time depending on the phase of the economic cycle and the level of interest rates in the economy. The research shows that central bank digital currency will stimulate the digitalization of the financial system while at the same time it will not create additional risks to financial stability. Introducing central bank digital currency is primarily aimed at promoting the efficient payment system. Further research is needed into mechanisms for the technical implementation of digital currency issuance, taking into account the possible risks associated with introducing fiat digital money.

This paper analyses a new concept presented in the works of B. Eichengreen, A.J. Mehl, L. Chitu “Mars or Mercury? The Geopolitics of International Currency Choice”, according to which the state’s possession of nuclear weapons is linked to its possession of reserve currency. The paper aims to provide a detailed assessment of how gaining reserve currency status depends on the military and political potential of the state issuer. The research method is an analysis of the historical material and the current state of the issue under discussion. The study shows the relationship between the global military and political leadership and control over the global financial infrastructure, which increases its importance as a space for interstate conflicts. It has been proven that neither the presence of military power nor the ability and willingness to provide partners with security guarantees do not predetermine the acquisition of the reserve status by the national currency. This status is acquired as a result of control over global investment processes, in the implementation of which military power plays a significant, but not exclusive role. This power, as the potential for economic and financial dominance, is a derivative of the scale and level of development of the national economy, with a key factor in its deep involvement in international trade. From the point of view of practical forecasting of economic, military and political development, the authors conclude that in the foreseeable future, despite the strengthening of its military potential, the PRC will not be able and, most likely, will not try to obtain the status of the yuan as a reserve currency. The United States, in turn, will increasingly use its dominance in the capital market and control over the global financial infrastructure as a tool to maintain global leadership. Further study of the considered issues will significantly increase the efficiency of forecasting economic processes in relation to the military and political situation.

This paper aims to investigate the essence and method of building a financial model of healthcare in Russia. The author applies methods such as analysis and synthesis, statistical data processing, systemic and structural approaches. This article is an analysis of the basics of building a budgetary and insurance model: cost allocation (various types of medical care, individual costs) by funding sources; system of inter-budgetary relations; the structure of expenditures of the budgetary system of the Russian Federation on healthcare in 2019. The study presents the financial model of the compulsory medical insurance (СMI) system and defines the role of insurance and private medical organizations in the CMI system. The mechanism of financing state (public) healthcare institutions is shown. The procedure for financing medical organizations according to the territorial program is considered (as illustrated by the example of the Irkutsk region). The article analyzes the methodology for calculating the cost of the territorial program and identifies the problems associated with it. The author pays special attention to organizations that do not carry out activities in the field of compulsory medical insurance, outlining the specifics of financing and legal regulation, and arguing the reasons for excluding a number of diseases from the compulsory medical insurance program. The paper examines the content of the new law on the CHI reform, which provides for direct financing from the budget of the Federal CHI Fund of federal institutions providing specialized medical care. The author highlights the main problems of the building of the budgetary and insurance healthcare funding model such as congestion, inconsistency, cost intensity. The author concluded that it is necessary to revise the organization of the healthcare system and mechanisms for its financial support. The outstripping growth in healthcare costs, on the one hand, and inadequate funding of medical institutions, on the other, lead to a constant search for a compromise between equity and cost-effectiveness. Based on this, the author substantiated the goals and determined the directions for further research, such as reducing transaction costs, changing the motivation of participants, identifying cost growth factors and the possibility of eliminating them.

The financialization genesis of the global economy centered in the United States is on the bifurcation point now— a fictive capital’ expansion is damaging with the social capital regeneration mechanism disaster. The method of identifying and estimating the fictive capital’ extension is absent for now. The fictive capital exists as a metaphor on the science papers but not as an institutional basis of the capital flows directions. The paper aims to update the configuration of the global financial system, its dependence on the performance of US corporations and banks; to identify the sources of vulnerability of world finance and global liquidity from the fictitious capital of American financial markets. The methodology is theoretical pattern’ of financial capital movements and its real statistical market indicators comparison. The empirical base is statistical data about the financial flows and financial results especially about the US as a global financial center. Based on the results the authors have revealed an origin of fictive capital on the US bank sector by the justification for the conclusion of liquidity above the profitable as the purpose of financial operations. This conclusion is confirmed with the scale of off-balance sheet transactions of banks. Besides the regression between the prices of derivative’ basis assets and stock indexes has been shown. Also, the market capitalization of American companies is not sensitive to change in market liquidity indicators. The authors concluded that global financialization is supported by significant internal contradictions in the US economy. The source of contradictions is the financial mechanism for withdrawing liquidity from the sphere of production and circulation into the sphere of financial markets. Capital investment using instruments of the US financial market entails the threat of losing their liquidity. Forecasting the dynamics of the global economy without taking into account the role of fictitious capital, which is emerging in the American financial markets, leads to global vulnerability and may cause the next financial crisis.