How to Finance New Government Spendings: Possible Mechanisms in the Environment of Sanctions

Abstract

Sanctions against the Russian Federation have created fundamentally new conditions for the functioning of the Russian economy. This poses new challenges, which require government spendings increase. It appears that Russian regulators have unused mechanisms, the use of which will provide the economy with new money, without complicating the situation of other sectors. The article suggests mechanisms that highlights internal sources of liquidity formation for the economy. In the environment of sanctions, such mechanisms also increase the independence of monetary policy from external constraints.