Long-Term Financial Stability in Russia

6th Annual International Bata Conference for Ph.D. Students and Young Researchers, Zlin

10 Pages Posted: 19 Apr 2010

See all articles by Gábor Dávid Kiss

Gábor Dávid Kiss

University of Szeged - Faculty of Economics and Business Administration

Date Written: April 15, 2010

Abstract

Reserve Fund, National Wealth Fund and the funded part of the pension system are acting as a puffer to smooth the impact of external shocks on Russian federal budget. Sensibility for external shocks is the result of raw material exporter role of the country; witch affects not only the balance of capital account, but the economic activity and indirectly the demographic balance too.

Russia has to face with external turmoils in the future due to the structure of its economy, so the strategy of forming sovereign wealth funds and de facto monopoly in the second pillar is logical strategy to smooth external shocks. But market based management human life cycle means that market risks – and the flow of global liquidity – will influent not only the active years but inactive years too, while these risks were transferred from the state to the individual trough the introduction of multipillar pension system. Therefore the introduction of multi pillar system can not care the problems of ageing, but establish a stable demand for government bonds.

Keywords: Sovereign wealth fund, Russia, multipillar pension system, aging

JEL Classification: E44, E62, I38, O16

Suggested Citation

Kiss, Gábor Dávid, Long-Term Financial Stability in Russia (April 15, 2010). 6th Annual International Bata Conference for Ph.D. Students and Young Researchers, Zlin, Available at SSRN: https://ssrn.com/abstract=1592386 or http://dx.doi.org/10.2139/ssrn.1592386

Gábor Dávid Kiss (Contact Author)

University of Szeged - Faculty of Economics and Business Administration ( email )

P.O. Box 652
Szeged, H-6701
Hungary

HOME PAGE: http://www.eco.u-szeged.hu/kgd-en

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