Financial Stabilisation of Global Economy Countries under Conditions of the Debt Crisis

Natalia Vovchenko () and Sulzhenko Victoria S.
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Sulzhenko Victoria S.: Rostov State Economic University

Business Inform, 2014, issue 1, 11_15

Abstract: European crisis hinders global restoration of economy, the growth of restoration slows down. All these require supranational solutions: creatio9n of regulation structures and new financial instruments in order to preserve stable world financial order. Methods of quantitative easing (QE), carried out by the American Federal Reserve System and Bank of England, aim at stimulation of private sector activity through reduction of loan cost, generation of positive effects of well-being and increase of investment income. Purchase of assets efficiently move dangerous financial assets from private sector to the balance of the central bank or special QE fund in exchange to risk free reserves of the central bank. Thus, both types of measures are performed by means of risks, accumulating on balances of central banks and indirectly on the balance of state administration. Exchange of information between relevant agencies, including debt administration office, state enterprises that administer assets and central bank, is important for efficient administration of all state assets and liabilities. Proper assessment of financial positions requires all-sided and transparent reporting of all state liabilities and assets. Besides, financial transparency facilitates consolidation.

Keywords: European crisis; financial policy; financial instability; measures of financial support; financial assets; supranational structures (search for similar items in EconPapers)
Date: 2014
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