Academic journal article Journal of Economics and Economic Education Research

Stimulating Aggregate Expenditures Using Financial Instruments for the Public Culture

Academic journal article Journal of Economics and Economic Education Research

Stimulating Aggregate Expenditures Using Financial Instruments for the Public Culture

Article excerpt

INTRODUCTION

The current state of the Russian economy is characterized by a drop in the main macroeconomic indicators, which is due to a combination of external and internal factors. The external factors include worsening of macroeconomic risks and introducing, in 2014 by the USA and the European Union, the restrictive anti-Russian sanctions comprising the restricted access to international capital markets, which in turn led to frozen export crediting in Russia and financing of backbone projects. The internal factors embrace the decline in aggregate expenditures, which is due to multiple price and non-price factors, among them - inflation, state budget deficit, high level of bank lending rates, ruble depreciation and others. The above factors have an impact on the dynamics of the aggregate expenditures' components - consumer expenditures, private domestic investment expenditures of employers and government expenditures, and they cause their decline. If the aggregate volume of the Russian citizens' consumer expenditures amounted to more than RUB 6.6 billion in 2014, the same indicator considerably decreased in 2015: about RUB 5.9 billion were spent on the current and long-term consumption (Statistical compilation "Social conditions and living standards of the Russian population" , Access mode:15.05.2016). In this case, the structure of consumer expenditures changes; in the crisis conditions, a share of durable goods shrinks; such goods are replaced by the ones for current consumption, which make up, according to the expert estimates, up to 80% of the households' aggregate expenditures. This is one of the essential reasons for drop in the real gross domestic product of the Russian Federation (RF), which declined by 3.7% in 2015 after rising by 0.7% in 2014. The GDP volume in 2015 amounted to RUB 80 trillion 412.5 billion compared with RUB 77 trillion 893.1 billion in 2014 (Statistical compilation "Social conditions and living standards of the Russian population", Access mode: 15.05.2016).

Surely, formation of the governmental anti-crisis policy inevitably involves the need to develop some measures aimed at stimulating the components of aggregate expenditures. At the same time, recognition that the share of consumer expenditures in the aggregate expenditures exceeds similar values of other components suggests the need of a more detailed study of the factors defining them. Traditionally, the non-price factors affecting the consumer expenditures' dynamics are composed of consumer expectations, volume of accounts payable, taxation level, household incomes. In turn, the consumer expectations and accounts payable are, to a large extent, determined by a condition of the financial culture among the population. Recognition of the low level of consumers' financial culture in the contemporary Russian society is a necessary but not sufficient precondition for forming a system of measures aimed at improving it. Content of the financial culture and composition of the instruments, the use of which allows to realize its potential for stimulating the consumer expenditures, are to be determined. It defines the relevance of the research topic, its theoretical and practical significance.

The financial culture concepts underwent a long period of formation. Methodological bases for studying the households' financial behavior were formed in the works of M. Weber, T. Veblen, G. Simmel, W. Sombart, K. Marx, O. Spengler and others, who examined the basic laws and principles governing the functioning of their contemporary society in the industrial stage of development. Certain provisions determining the content of the consumers' financial culture were formulated in XX century in the works of J.M. Keynes, K. Polanyi, P.A. Sorokin, M. Friedman, F. Hayek, J. Schumpeter and others. Examining the financial culture among the population is interdisciplinary, which is due to the characteristics of the object under study. In this connection, a significant contribution should be recognized made to interpretation of the financial culture content and manifestation forms by T. …

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