Trust to the institution of money as the basis of development of the monetary-and-credit sphere in modern conditions

Abstract

The urgency of the analyzed issue is due to the fact that the institutional credibility of money is one of the factors determining the formation of a new model of management of the monetary sphere, which allows generating long-term money in the economy, ensuring economic stability in times of crisis, as well as contributing to the reproduction of the horizontal type of coordination of socio-economic relationship. The purpose of the article is the theoretical-methodological basis of institutional trust influence of money on the development of the monetary sphere. The leading approaches are historical-economic, institutional and evolutionary, elements of econometric modeling, tools of financial analysis which substantiate the impact of institutional trust on the development of the monetary sphere. It was revealed that the institutional credibility of money is a complex three-tier structure having multiple forms. It is proved that the combined index of confidence in financial institutions has a high degree of consistency in terms of the dynamics of the index of consumer sentiment, and was developed an econometric model. It is shown that the transformation of traditional ideas about the evolution of the issue of money in the context of the increasing importance of confidence to economic entities from the institutions of the monetary sphere. It revealed the necessity to build a fiduciary rating of economic entities for the purpose of determining the amount of private money, issued by market participants, and it will increase the transparency of the information about potential users of banking services and will contribute to the stability of the monetary sphere, the growth of the welfare of individuals. The article data may be used in the development of the monetary policy of central banks, aimed at creating conditions for economic growth. © International Economic Society.