Mechanism of transformation of savings into investment: ways to improvement in modern Russia

Abstract

Purpose: scientific justification of ways to improvement savings into investment transformation mechanism under modern Russia conditions. Discussion: savings are the main source of investment. However heterogeneous economic agents make saving and investing decisions, there is almost always no the finance-investment and saving-funding equality in case of underemployment. Under such conditions the government has to promote regulation of savings into investment transformation mechanism to lead the economic system to a new dynamic equilibrium under conditions of economic growth. Results: in the first part, authors identified the key features of the mechanism for transforming the savings of the population into investments typical for modern Russia: (1) decrease in the level of «cash» savings; (2) preference for a short-term horizon for saving decisions; and (3) the excess of gross saving rate over gross investments rate. In the second part, authors paid attention to Russian Federation government role in the improvement of the effective savings into investment transformation mechanism. In particular (1) the development of «long» money market funds; (2) creating favorable conditions for institutional investors; (3) stimulating the savings activity of the population.