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Concept of the Exchange Rate Policy and Capital Control of the National Economy in Terms of Global Finance Instability

Author

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  • Anton V. Navoy

    (Financial University under the Government of the Russian Federation, Moscow, Russia)

Abstract

The article presents approaches to monetary and financial regulation in terms of increased instability of global finance. Changes in the nature and scope of external challenges, the complexity of the financial instruments’ composition, increased volatility in the global currency and financial markets required the development of a systematic approach to the forms and methods of regulation under the changed conditions. The author proposes conceptual approaches to the development of regulatory measures on the basis of identifying the country’s place as a net debtor / net lender of the rest of the world; investment conditions at the global financial market estimates; optimization of the foreign assets and liabilities structure and their interface, as well as implementation of a set of measures for possible diversification and enhancing the role of redistribution mechanisms at the national market. In addition, the author draws the conclusion that this approach will allow to adjust the structure of the IIP, increase financial stability and efficiency of the country’s integration into global financial flows.

Suggested Citation

  • Anton V. Navoy, 2018. "Concept of the Exchange Rate Policy and Capital Control of the National Economy in Terms of Global Finance Instability," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 71-86, February.
    • Handle: RePEc:fru:finjrn:180106:p:71-86
    DOI: 10.31107/2075-1990-2018-1-71-86
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    References listed on IDEAS

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    1. Nicolas E. Magud & Carmen M. Reinhart & Kenneth S. Rogoff, 2018. "Capital Controls: Myth and Reality--A Portfolio Balance Approach," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 1-47, May.
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    More about this item

    Keywords

    global challenges; external shocks; current account; balance of payments; international investment position; international reserves; international investments; foreign loans;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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