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The Emergence of Non-monetary Means of Payment in the Russian Economy

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  • Mario Gara

Abstract

The widespread use of non-cash payments in Russia is the result of a complex bundle of factors: tax evasion, established networks of enterprises and policy-induced causes. By use of non-monetary payments, agents have relaxed their liquidity constraints, but they still lack the financial resources needed to undertake investment and restructuring. Banks' credit provision is based on criteria other than the profitability of the recipient of the funds. The interest rate, coupled with the restructuring of the banking sector, could operate as an effective lever that may lead to a more economically consistent management of liquidity and could also reduce capital flight.

Suggested Citation

  • Mario Gara, 2001. "The Emergence of Non-monetary Means of Payment in the Russian Economy," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 5-39.
    • Handle: RePEc:taf:pocoec:v:13:y:2001:i:1:p:5-39
    DOI: 10.1080/14631370020031496
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    Cited by:

    1. José Noguera & Susan J. Linz, 2006. "Barter, credit and welfare," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(4), pages 719-745, October.
    2. Kim, Byung-Yeon & Pirttila, Jukka, 2004. "Money, barter, and inflation in Russia," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 297-314, June.
    3. Vlad Ivanenko, 2004. "Access to liquidity and non-monetary trade in Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 16(1), pages 21-38.

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