Economics

Macroeconomic forecasts often assume shock-induced unemployment is temporary and that employment and output recover. However, the reality may be far more complicated. The loss of skills and the mismatch that arises when workers switch industries may stall a recovery for years.

The science of economics is not mere knowledge of the world but a way of knowing it. This is why fictional worlds may be legitimate areas of research which are sometimes more convenient than the real world.

In Russia, around a third of the employed face a significant risk of being potentially affected by AI in their daily work. However, full automation, owing to the shift of all functions from humans to AI, threatens less than 1% of jobs.

The price differential between new builds and resale properties in Russia is driven by factors beyond macroeconomic conditions. What also matters is the housing market structure including the level of competition among developers and banks, and subsidised mortgage programmes.

The digital economy is transforming the classic factors of production Adam Smith described in The Wealth of Nations – the treatise that laid the foundation of economics. Two and a half centuries later, Smith’s ideas remain relevant, but new realities demand that we rethink them.

Participants in the Bank of Russia’s Financial Congress discussed the impact of the rapid development of artificial intelligence on the economy, the risks it carries, and how regulators should respond.

Participants in the Bank of Russia’s Financial Congress discussed whether the housing market in Russia is overheated, the risks of payment by instalments, and the risks faced by developers and buyers.

Over the past year and a half, the ruble exchange rate has strengthened despite the turbulence and volatility of the foreign exchange market. Participants in the Bank of Russia’s Financial Congress discussed the factors influencing the dynamics of the ruble exchange rate.

The world has entered a geopolitical recession – a prolonged erosion of international cooperation. In addition, the global economy is being reshaped by climate, demographics, and artificial intelligence, which brings both economic opportunities and new geopolitical risks.

Russia has seen a twofold rise in the average standard of living over the past 20 years. However, the share of food in household spending has shown paradoxical trends: in defiance of economic theory and global practice, it has changed little, if at all.

Central banks have faced a new reality: supply shocks have become the norm, and confidence in low inflation has been shaken. Participants in the New Economic School discussed why a resilient economy is at risk of structural damage and why monetary policy needs a ‘house of brick’.

The world economy is increasingly facing oil, semiconductors, labour force and rare-earth shortages. But is it really a problem of scarcity, and is the market capable to regulate these imbalances? Participants in discussion at the New Economic School addressed these issues.

People often make unnecessary purchases or end up paying more than they can afford to, contrary to their economic benefit. Such consumption is called non-standard, and is observed, at least occasionally, in almost half of Russian adults.

Crowdfunding needs more than just money and internet access to grow. Interpersonal trust, institutional predictability, and cultural behaviour patterns are essential for collective investment: crowdfunding can serve as a mirror reflecting the level of trust in the economy.

Russians tend to judge inflation by average expenditure rather than ‘visible items’ and describe a ’good economy’ as a self-reliant manufacturing powerhouse. This influences the perception that the key rate is an instrument to support production rather than manage demand.

People often intuitively perceive economics as a zero-sum game, where one person’s gain automatically means another person’s loss. These naïve economic beliefs distort decision-making processes and become a handy tool for political manipulation.

The price of gold is shaped by a combination of fundamental and political factors. We examine the key forces that form it and explain, why the Fed’s decisions has taken the back seat, how central banks and the AI boom influence the market, and why low-grade gold ore prevails?

Countries that do not target inflation responded to the post-COVID inflation surge in a similar way to those with inflation targeting (IT), that is by raising policy rates. This crisis-driven convergence is the ultimate test of the IT regime’s efficiency under various conditions.

Migrants make a substantial contribution to the economy of the Russian capital, accounting for over 20% of its GRP. Up to two-thirds comes from residents of other Russian regions. The significant role of internal migration is what sets Moscow apart from many other global cities.

The degree of monetary tightening for a sustainable disinflation depends not only on the inflation rate, but also on the conditions that have led to its rise. There are three reasons why considerable monetary tightness might need to be maintained even when inflation decelerates.

Industrial policy is recovering all over the world. Our analysis of more than 6,500 regulatory acts across nations evidenced that advanced economies support high-tech mastered sectors, while emerging markets – the introduction of simpler technologies, which are new to them.

Human capital and its key component – education – are strongly linked to economic growth. However, high levels of education do not guarantee economic growth if a weak institutional environment hinders efficient application of knowledge and skills.

While advanced economies were promoting the climate agenda as ideology, the Global South was investing in renewable energies and new technology markets. Energy transition is still underway in both ‘worlds’. What this means to Russia was discussed at the Financial Congress.

The Russian labour market is gradually cooling, but high unemployment does not threaten it. The main challenge for the economy is not so much labour shortages as a lack of highly qualified specialists, analyzed the participants of the Financial Congress.

The slowdown in the Russian economy has provoked concerns about an immediate threat of a succession of defaults and a coming banking crisis. Participants in the Financial Congress discussed whether these gloomy expectations were justified.

Is it possible to ‘buy’ economic growth with high inflation, how demand ‘accumulated’ over years, what investments increase productivity, and where forecasters make a mistake: abstracts from the Financial Congress session dedicated to economic growth.

Suboptimal and erroneous financial decisions people make often stem from cognitive biases. Their effect can be mitigated by impacting two key aspects – people’s behaviour and the decision-making environment.

The impact of population ageing on inflation remains contentious, as researchers’ opinions differ as to whether ageing has a deflationary or proinflationary effect. Our work uses data from the Russian regions to show that an elderly population has a proinflationary effect.

Why does a central bank need a Telegram channel, what makes the Russian economic information space special, how are inflation expectations managed, does AI help the Bank of Russia write press releases – these are key points from the discussion hosted by New Economic School.

An import reduction has a more than proportionate impact on Russia’s industrial output and exports. Over one year, a 1% decrease in imports as a share of production costs across industries leads to a more than 2% output reduction and an even more significant decline in exports.

The macroeconomic situation is the overall performance of the country’s regional economies. Experts at the Bank of Russia’s Financial Congress assessed which regions are benefiting and which are losing out as a result of the ongoing transformation and structural changes.

Modern technology and big data on retail sales enable more accurate and faster measurement of inflation. We are developing a methodology for calculating a price index based on data from online receipts: in the future, it will make it possible to track inflation in near real time.