Global Instability and Russias Financial Sphere Reform

Abstract

The article considers the current state of the world financial system. In particular it notes growing fiscal crisis and significant disbalance between monetary and budgetary policies in the leading developed countries. Such a situation can provoke strong movement of speculative capital in transition economies markets. This makes it necessary to accept a number of measures of financial and budgetary regulation in Russia. In the sphere of budgetary policy the authors suggest measures aimed at contracting public expenditures and their fixing in real terms; in the sphere of financial regulation - measures aimed at improving the quality of banking capital, increasing the level of liquidity and optimizing reserves.