The paper deals with the key challenges of global economy and their application to current Russian development. The main topics are the following: emerging etatism and populism, social and economic polarization, increasing role of national agendas versus the global one, domination of national security issues over economic policy, and the social and political consequences of technological shift towards digitalization. Prospects, character, and sources of future economic crisis are also under consideration. Global trends form the basis for the analysis of Russian economic policy.

The article discusses the normative documents associated with the introduction of Russian regions’ heads key performance indicators (KPI). It draws attention to negative contract externalities intensively discussed in the economic literature of recent decades. Negative contract externalities accompanying the incentive contracts are typically associated with multitask moral hazard. They can serve as an explanation of KPI failure in many business firms. The results of KPI application in the sphere of public administration will inevitably become even more disappointing.

The paper analyzes the shifts in government priorities in terms of support of big and medium manufacturing enterprises amid 2008—2009 and 2014—2015 crises. Based on the data of 2009, 2014 and 2018 surveys of Russian manufacturing firms, using logit regressions we identify factors that affect the receipt of financial and organizational support at different levels of government. The analysis shows that in 2012—2013 the share of manufacturing firms that received state support shrank significantly as compared to 2007—2008; moreover, the support concentrated on enterprises that had access to lobbying resource (such as state participation in the ownership or business associations membership). In 2016—2017 the scale of state support coverage recovered. However, the support at all levels of government was provided to firms that carried out investment and provided assistance to regional or local authorities in social development of the region, while the factor of state participation in the ownership became insignificant. The paper provides possible explanation for these shifts in the criteria of state support provision in Russia.

The article analyzes the focus and effects of the main tools to support industrial enterprises in Russia: direct budget financing, tax relief, support of state development institutions. Based on the analysis of empirical data at the micro-level, we consider a typical “portrait” of the company — the recipient of state support. The main effects in the activities of companies that have received it are analyzed. We demonstrate that, on the one hand, resources are being allocated to innovative companies, exporting companies. On the other hand, there is a bias of state support to large companies, state-controlled firms, companies, oriented at the public sector. The latter may result from the less innovative activity of private companies (which, most likely, is a consequence of the worsened business climate), as well as to their caution in using state support due to the associated risks. All tools of state support contribute to the growth of company revenue, but at the regional level, support is more related to the task of stabilizing employment and preserving the output of products purchased by the state. We have revealed the most positive changes in companies that have received support from state development institutions. Tax incentives are a tool opened to “young” firms, for companies introducing innovative products that are new to the world — in this sense, they are complementary to other instruments and are essential for the formation of a holistic ecosystem.

A survey of the top management of 1716 industrial companies in Russia in 2018 shows differences in the likelihood of losing property as a result of raider attacks. In this article, we analyze the factors that affect the subjective attitudes about the level of security from violent pressure on business. We show that large companies with political connections can effectively use the judicial mechanism to protect their interests. Small companies without political connections also feel quite protected avoiding participation in the courts and staying imperceptible. Companies that have unsuccessful experience in litigation see the greatest risks for themselves. To receive additional protection such companies participate in business associations.

The paper considers necessary conditions for acceleration of labor productivity growth in Russia. Based on micro data, as well as aggregate data, the paper quantifies the contribution of small and medium firms to labor productivity growth. It shows that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate. Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential, to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.

The article attempts to analyze the debt crisis in Portugal — as an essential component of the Great Recession in this country — using the financial fragility hypothesis developed by H. P. Minsky. Using a sample of 42 leading Portuguese non-financial private companies, the paper analyzes how the financing regimes used by these companies changed from 2001 to 2017. Before and at the height of the Great Recession, the share of firms with hedge financing mode was decreasing, while the share of firms with fragile financing regimes was increasing. Special attention is paid to how the Portuguese authorities applied austerity policies to deal with the debt crisis, and how they subsequently departed from the principles of this policy. The paper demonstrates that it was precisely after departing from the austerity doctrine that Portuguese non-financial private firms largely managed to get rid of financial fragility.

The work of the Danish sociologist O. Bjerg is among the few in recent years, which discusses the issues related to what money is in the modern world, what are its essence and origin. The book’s focus is on a philosophical approach to understanding the role of money in modern society and economy. The author of this book believes that mainstream economists have not yet been able to offer a universal theory of money, and that it is necessary to use other methodological approaches to determine what money is. In his book, Bjerg aims to formulate an original philosophical theory of money, with which he proposes to solve numerous problems of monetary theory with the help of philosophical concepts and categories. The book has a huge creative potential, motivating researchers to use the philosophical approach proposed by the author for the knowledge of money as an economic phenomenon.

What is the driving force of the evolution of monetary systems in the longrun? Based on an in-depth analysis of economic history and the findings of contemporary studies, Prof. S. Andryushin argues that it is the perpetual rivalry between centralization and decentralization. This article juxtaposes arguments for and against such a viewpoint. In particular, I assert that centralization or decentralization per se cannot safeguard financial stability, nor secure optimality of monetary policy. Both trends need to be assessed alongside with concomitant political and economic factors as well as institutional environment. Against this backdrop, the ongoing trend towards decentralization associated with cryptocurrencies is so far unlikely to remedy all the drawbacks of the contemporary monetary system.

The article is a reflection on Olga Butorina’s book “The economic history of the euro” published in 2020. The book provides a thorough in-depth analysis of the prerequisites for the European Economic and Monetary Union formation, describes the chronology of its integration, and makes forecasts about the future of the bloc. Some historical events presented in the book can be used as a base for independent cases for lecture courses, including those referred not only to international currency relations topics. The author’s search for answers to the fundamental question of why Europeans needed currency integration is of particular interest to readers. Of course, such a large-scale pamphlet cannot avoid discussable as well as controversial statements.