Impact of currency regulation on public welfare and economic security

Abstract

The research examines the role of currency regulation in ensuring economic security, and special emphasis is placed on the analysis of this issue from the point of view of public welfare. Income growth as a source of human capital development is impossible without effective state regulation at the current stage of economic development. Regular changes in Russia’s foreign economic activity, economic and political problems at the national and international levels, and the widespread use of modern technology pose a threat to both national and economic security. All this creates the need for regular analysis of statistics on individual indicators, including the detection of violations of currency legislation. The study also analyzed the issue of legal and illegal capital outflows and their impact on the economy; it was determined that the outflow of funds due to legal transactions exceeds illegal ones by many times. This fact underscores the need to introduce measures to minimize net outflows. The factor that determines people’s standard of living has been chosen GDP (PPP) per capita, and reflected the impact of the foreign exchange market on public welfare using regression analysis. The results also explain the import substitution policy of the Central Bank.