Last global financial crisis testifies limitations of traditional tools of business stimulation. It forces to look for new ways of business stimulation. In article limitations of traditional tools of business stimulation are shown, and it is noticed that decrease of precautionary motive of...

There are some views explaining unbalanced growth, but the impact of interest rates on the structure of the economy has still been poorly investigated. This paper assesses the impact of interest rates on the productive structure of the economy. It is argued that as interest rates are fixed,...

The paper explores the role of credit in business cycle and it is noted that one of the factors contributing to the cyclicity of economy is the difference between firms' profitability and interest rate on loans. The paper says that the amplitude of business cycles may be decreased through the...

The paper investigates the reasons why easy monetary policy in the US, Euro area and Japan doesn't promote economic growth. The paper argues that (i) ineffectiveness of easing monetary policy is caused by cash hoarding caused by excess of deposits over loans and (ii) cash hoarding is caused by...

The paper investigates the problem of the excess of deposits in banks over loans observed in the US, Europe and Japan, resulting in the cash hoarding in banks. The paper argues that as the higher the borrowers' debt service ratio, the greater default risks, borrowers with high debt service ratio...

Last global financial crisis, as well as any crisis, testifies imperfections of former model of development of economy and financial sector in particular. It forces to look in a new way and reconsider principles of functioning of the financial system. In article imperfections of the financial...

Despite ultra-easy monetary policy in US, Eurozone and Japan, lending interest rate remains higher than expected profitability. However minimal lending interest rate in advanced economies diminishes the Central Banks' ability to stimulate economic growth. Paper argues that high interest rate is...

Paper provides analysis of the impact of interest rates on manufacturing's share of GDP across countries and argues that 1) interest rates differently affects tradable and non-tradable sectors, 2) manufacturing is more sensitive to interest rate fluctuations than the non-tradable sectors, and 3)...

One of the most important problems of resource-rich countries is Dutch disease whose main feature is the appreciation of the domestic currency that reduces the competitiveness of tradable sector and redirects resources from tradable sector to the natural resource and non-tradable sectors which...

Paper considers the impact of cash, debt, trade credit and equity financing on firm efficiency. Paper argues that 1) cash holding negatively affects firm efficiency, 2) debt and trade credit have both positive and negative impact on efficiency, 3) debt and trade credit are more conducive to...