Author: Valerian V. Popkov

Abstract:

The article presents the theoretical rationale for and proves the necessity of the practical application of payment-investment ruble (PIR), which is a tool for solving acute problems of extreme insufficiency of internal sources of investment and replenishment of working capital. The rationale for the use of PIR is based on the following conceptions: a) closed cyclical economic structures; b) internal and external money; c) money as a means of communication. PIR, being independent of foreign currency, connects labour productivity with existing and newly formed means of production, promotes growth, and prevents the outflow of the results of national labour abroad. PIR fuels the demand for ruble within the country and thereby increases its exchange rate, thus reducing inflationary expectations. PIR enables the regulator to adjust money supply in rubles depending on the growth of GDP calculated as the sum of the PIR and rubles.

Keywords: internal money; external money; inflation; communication; monetization; payment-investment ruble; cyclic structure.