The paper demonstrates the allocation of risk in Islamic banking and shows that in Islamic banking as risks are carried by the owner of funds and are not transmitted to other counterpart, large part of risks are born by depositors that makes financial system more stable. Paper also demonstrates...

Most of central banks are responsible for single inflation goal, some central banks (for example FRS) fulfill dual mandate of maximum employment and price stability. Paper argues that the best way to promote sustainable economic growth and at the same time to contribute to low inflation and full...

Debt can increase economic growth as it allows the households and firms to increase consumption and investment. However, high reliance on debt adversely affects economy as it can cause debt-deflationary recession, balance sheet recession, cyclical fluctuations in economy and decrease in...

The article considers the problems monetary policy in the US and the Eurozone have faced in recent years, analyses effectiveness of unconventional tools used by central banks, such as quantitative easing, negative interest rates, as well as considers the prospect of fast-growing in recent years...

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...

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,...

Despite the numerous works devoted to innovation, ways to encourage innovation activity are still unclear. The paper shows that an increase in the factors of production has a negative impact on productivity growth. It is also argued that to encourage firms to increase productivity, monetary...

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...

Last global financial crisis, as well as liquidity trap in Japan, the theory of debt deflation, the financial fragility hypothesis, the theory of balance sheet recession testifies imperfections of financial relations based on debt financing. It forces to reconsider principles of functioning of...

Despite the key role an increase in production efficiency plays in improving the competitiveness of the economy, the efficiency of production is not reflected in the objectives of monetary policy. The paper investigates the impact of the interest rate on firms’ efficiency and argues that it is...