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Finance and Credit
 

The financial and economic substance of the contemporary Russian capitalism

Vol. 26, Iss. 10, OCTOBER 2020

Received: 6 July 2020

Received in revised form: 4 August 2020

Accepted: 18 August 2020

Available online: 29 October 2020

Subject Heading: FINANCIAL CAPITAL

JEL Classification: E60, Е69, F20, F29, O10

Pages: 2230–2251

https://doi.org/10.24891/fc.26.10.2230

Smirnov V.V. I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation
v2v3s4@mail.ru

https://orcid.org/0000-0002-6198-3157

Subject. I herein focus on the capitalism in Russia today.
Objectives. The study is an attempt to determine what distinguishes the financial and economic substance of the Russian capitalism today.
Methods. The study relies upon the systems approach and methods of statistical, neural network and cluster analysis.
Results. The article reveals the difference of trends in general indicators of financial and business activities in capitalist Russia, socialist China and the imperialist USA. I discover development distinctions of the Russian economy, such as high growth rates of money supply, considerable simultaneous drop in foreign exchange rates, moderate debts of the Russian households and minimum wages, low unemployment rate, low growth rate of the current account balance to GDP as compared with the devaluation rate of the national currency. Having conducted the neural network analysis of growth rates of the money supply, solvency ratios and profitability of entities, financial results of the Russian credit institutions, I found median values of growth rates. Negative values were captured for the return on assets, return on sale of goods, products, work, services, and the equity-to-total assets ratio. Positive ones were found for total profit derived by operational credit institutions, losses and the percentage of unprofitable credit institutions. As the cluster analysis of growth rates of households’ consumption spending shows, there is a palpable correlation between food products and alcohol-free beverages, alcohol beverages, tobacco, clothes, shoes, communications.
Conclusions and Relevance. The financial and economic substance of the contemporary Russian capitalism helps financial institutions and legislature consistently set up the concept and principles for retaining capitalism in Russia, considering the marginal proportions of the money supply growth to the unemployment rate, minimal wages, debt and consumption spending of households, which are adjusted within the possible divergence of the foreign exchange rate and current account balance to GDP. The findings constitute the necessary scope of governmental authorities’ competence to make managerial decisions for keeping the capitalist vector of the Russian society and economy.

Keywords: money supply flows, cluster, Russian capitalism, growth rate, financial and economic activity

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