Model for integrating monetary and fiscal policies to stimulate economic growth and sustainable debt dynamics

This article examines the main integration trends of the state's monetary and fiscal policy in influencing economic growth and maintaining the sustainability of public debt. It is argued that the relationship between these trends of macroeconomic regulation is predetermined, on the one hand, by the potentially negative impact of fiscal expansion from the point of view of inflation, and by the negative impact of a likely state default in failing to refinance the debt from the Ministry of Finance, on the other hand. The paper studies the selected array of statistical data using the fiscal policy multipliers concept, the relationship between the effect of increase/decrease in budget expenditures, the slowdown in economic activity and the efforts by the Central Bank to offset fiscal measures, on the one hand, and the ratio of an increase/decrease in budget revenues and debt expenditures used to finance the budget investments, on the other hand. It is revealed that the investments are effective if implementing budget expenditures in the presence of the GDP gap and unrealized expectations of economic agents, while reducing spending in such a situation will intensify the recession. The GDP growth determined by these investments should provide the tax effect sufficient to cover the expenses. Otherwise, there can be negative effects of debt that establishes the need for measures to refinance public debt by the Central Bank. The conclusions of the paper can be used to assess the possible integration of monetary and fiscal policy based on various states.peer-reviewe

The country's economic growth models and the potential for budgetary, monetary and private financing of gross domestic product growth

This article examines the financing of GDP growth within the framework of catch-up, evolutionary and dynamic models of economic development. Methods/statistical analysis: using the principles of the Solow model and the Cobb-Douglas function, an analysis of the nature of the models has been carried out, considering the processes of capital accumulation, the rate of growth of the workforce, and various aggregate factor productivities. With the help of historical logic and statistical evaluation, examples of countries relating to each of the models examined are reviewed. Based on the analysis, the main ways of financing economic growth are noted: both the state ones, due to budgetary and monetary policy measures, and private ones. It has been proven that with the transition from catch-up to an evolutionary or dynamic model, the role of the state as a centralizing force is diminishing. At the same time, the specificity of a dynamic model is due to the country's objective ability to be among the technological leaders, which is predetermined by the high values of current GDP, per capita GDP, and population size. Countries with an evolutionary model of development are constrained in their ability to maintain a comparable pace of development only within separate "growth points". The main result of the work is the assessment of Russia's potential from the viewpoint of one of the models considered, based on a comparative analysis of several capital indicators, as well as a logical analysis of data on the level of GDP and population with other countries. This makes it possible to make recommendations for financing the country's GDP growth in the medium to long term. Scope/Improvements: The findings can be used in the development of Russia's financial and economic strategy up to 2030.peer-reviewe

CORPORATE DEBTS AD CREDIT PERFORMANCE UNDER THE NEW MECHANISM OF REORGANIZATION OF THE RUSSIAN BANKS

Objective: to explore the dynamics and factors of formation of corporate debts, the characteristics of low credit activity of the Russian banks and regulation of liquidity deficit of enterprises under the new reorganization mechanism in the Russian banking sector.Methods: systematic approach to the cognition of economic phenomena, which allows to study them in their dynamic development, taking into account the influence of various environmental factors. The systematic approach determined selection of specific research methods: empirical, logical, comparative and statistical.Results: the article is devoted to the problems of declining credit activity of commercial banks under the conditions of economic activity revival, as well as to assessing the impact of the new reorganization mechanism on this process. It is shown that in the recent years the non-financial sector faces the trend of optimizing the corporate debts and the liquidity deficit, which reduced the demand for loans and, as a consequence, decreased the banks’ credit activity.To analyze the dynamics of deficit/surplus of liquidity in the corporate sector, a new classification of liquidity deficit/surplus levels was introduced. Based on the proposed classification, the risk factors were identified that influenced the dynamics of indebtedness in the corporate sector.The article also analyses the modern monetary mechanism of money supply in the economy and its transformation. It was determined that the main limitation of credit issuance by commercial banks is their capital, not the reserve multiplier. The new mechanism of credit institutions’ financial recovery and its impact on the banks’ credit activity was estimated. The conditions of liquidity deficiency reduction in the Russian companies were analyzed in the medium term.Scientific novelty: for the first time, on the basis of system analysis methods, the growth factors of the corporate debt load were identified, the peculiarities of low credit activity in the banking sector were investigated, as well as and the possibility to regulate the liquidity of Russian enterprises under the conditions of a new mechanism of the Russian banks’ reorganization. Practical significance: the main provisions and conclusions of the article can be used to modernize and clarify the target mandates, instruments, channels and mechanisms of the Bank of Russia monetary policy, which enable to increase the Russian banks’ credit activity and to reduce the corporate debts of enterprises to the maximum permissible level

Suppression of surface barrier in superconductors by columnar defects

We investigate the influence of columnar defects in layered superconductors on the thermally activated penetration of pancake vortices through the surface barrier. Columnar defects, located near the surface, facilitate penetration of vortices through the surface barrier, by creating ``weak spots'', through which pancakes can penetrate into the superconductor. Penetration of a pancake mediated by an isolated column, located near the surface, is a two-stage process involving hopping from the surface to the column and the detachment from the column into the bulk; each stage is controlled by its own activation barrier. The resulting effective energy is equal to the maximum of those two barriers. For a given external field there exists an optimum location of the column for which the barriers for the both processes are equal and the reduction of the effective penetration barrier is maximal. At high fields the effective penetration field is approximately two times smaller than in unirradiated samples. We also estimate the suppression of the effective penetration field by column clusters. This mechanism provides further reduction of the penetration field at low temperatures.Comment: 8 pages, 9 figures, submitted to Phys. Rev.

Effects of Magnetic Order on the Upper Critical Field of UPt3_3

I present a Ginzburg-Landau theory for hexagonal oscillations of the upper critical field of UPt$_3$ near $T_c$. The model is based on a $2D$ representation for the superconducting order parameter, $\vec{\eta}=(\eta_1,\eta_2)$, coupled to an in-plane AFM order parameter, $\vec{m}_s$. Hexagonal anisotropy of $H_{c2}$ arises from the weak in-plane anisotropy energy of the AFM state and the coupling of the superconducting order parameter to the staggered field. The model explains the important features of the observed hexagonal anisotropy [N. Keller, {\it et al.}, Phys. Rev. Lett. {\bf 73}, 2364 (1994).] including: (i) the small magnitude, (ii) persistence of the oscillations for $T\rightarrow T_c$, and (iii) the change in sign of the oscillations for $T> T^{*}$ and $T< T^{*}$ (the temperature at the tetracritical point). I also show that there is a low-field crossover (observable only very near $T_c$) below which the oscillations should vanish.Comment: 9 pages in a RevTex (3.0) file plus 2 postscript figures (uuencoded). Submitted to Physical Review B (December 20, 1994)

Metals in high magnetic field: a new universality class of Fermi liquids

Parquet equations, describing the competition between superconducting and density-wave instabilities, are solved for a three-dimensional isotropic metal in a high magnetic field when only the lowest Landau level is filled. In the case of a repulsive interaction between electrons, a phase transition to the density-wave state is found at finite temperature. In the opposite case of attractive interaction, no phase transition is found. With decreasing temperature $T$, the effective vertex of interaction between electrons renormalizes toward a one-dimensional limit in a self-similar way with the characteristic length (transverse to the magnetic field) decreasing as $\ln^{-1/6}(\omega_c/T)$ ($\omega_c$ is a cutoff). Correlation functions have new forms, previously unknown for conventional one-dimensional or three-dimensional Fermi-liquids.Comment: 13 pages + 4 figures (included

Collective pinning of a frozen vortex liquid in ultrathin superconducting YBa_2Cu_3O_7 films

The linear dynamic response of the two-dimensional (2D) vortex medium in ultrathin YBa_2Cu_3O_7 films was studied by measuring their ac sheet impedance Z over a broad range of frequencies \omega. With decreasing temperature the dissipative component of Z exhibits, at a temperature T*(\omega) well above the melting temperature of a 2D vortex crystal, a crossover from a thermally activated regime involving single vortices to a regime where the response has features consistent with a description in terms of a collectively pinned vortex manifold. This suggests the idea of a vortex liquid which, below T*(\omega), appears to be frozen at the time scales 1/\omega of the experiments.Comment: 4 pages, 3 figures, submitted to Phys. Rev. Let

Electric field dependence of pairing temperature and tunneling

Using the Bethe-Salpeter equation including high electric fields, the dependence of the critical temperature of onsetting superconductivity on the applied field is calculated analytically. The critical temperature of pairing is shown to increase with the applied field strength. This is a new field effect and could contribute to the explanation of recent experiments on field induced superconductivity. From the field dependence of the Bethe-Salpeter equation, the two--particle bound state solution is obtained as a resonance with a tunneling probability analogous to the WKB solution of a single particle confined in a potential and coupled to the electrical field.Comment: 4 pages 1 figure, revised version from 29.10.02, Rev. B in pres

Meissner-London currents in superconductors with rectangular cross section

Exact analytic solutions are presented for the magnetic moment and screening currents in the Meissner state of superconductor strips with rectangular cross section in a perpendicular magnetic field and/or with transport current. The extension to finite London penetration is achieved by an elegant numerical method which works also for disks. The surface current in the specimen corners diverges as l^(-1/3) where l is the distance from the corner. This enhancement reduces the barrier for vortex penetration and should increase the nonlinear Meissner effect in d-wave superconductors

Possible new vortex matter phases in BSCCO

The vortex matter phase diagram of BSCCO crystals is analyzed by investigating vortex penetration through the surface barrier in the presence of a transport current. The strength of the effective surface barrier, its nonlinearity, and asymmetry are used to identify a possible new ordered phase above the first-order transition. This technique also allows sensitive determination of the depinning temperature. The solid phase below the first-order transition is apparently subdivided into two phases by a vertical line extending from the multicritical point.Comment: 11 pages, 3 figures, accepted for publication in PR