The government’s expansion into the economy and its consequences for the financial market

Abstract

Konstantin Vladimirovich Krinichansky National Research University The Higher School of Economics

The paper examines the impact of the policy of state property expansion upon the Russian financial market during the last decade. Using empirical data and the methods of structural and comparative analysis, he author shows how this policy is reflected in the structure of financial market and is connected with the dependence of Russian economy on foreign debt financing. The author also proves that the property expansion is the main cause of the stagnation of development of Russia's financial sector.