48. Wto and the problems of the Russian Federation participation in it. Вто и проблемы участия в ней рф.

The World Trade Organization (WTO) (159 members) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on 1 January 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements. On December 16, 2011, trade ministers approved the terms of Russia’s accession and issued a formal invitation for Russia to join the World Trade Organization (WTO) as its 155th Member. 18-year efforts to join the multilateral trading system have finally ended for Russia.

Problems:

1. Tariffs go down => in a short run negative effect on the budget

2. Inflow of foreign products (including cheap Chinese) – inability to compete for Russian producers

3. Probable disappearance of some sectors => job cuts

4. No subsidies – worsening the situation for agricultural sector

5. Inability to increase customs duties – inability to protect domestic producers; all import restrictions are to be explained

49. Quantitative Easing, Unconventional Monetary Policy, and Bailout of Major Financial Institutions. Программы количественных смягчений, неконвенциональная монетарная политика и выкуп крупных финансовых институтов.

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when standard monetary policy has become ineffective. CB implements quantitative easing by buying financial assets from commercial banks and other private institutions, and the monetary base increases. This is distinguished from the more usual policy of buying or selling government bonds in order to keep market interest rates at a specified target value. Expansionary monetary policy typically involves the central bank buying short-term government bonds in order to lower short-term market interest rates. However, when short-term interest rates are either at, or close to, zero, normal monetary policy can no longer lower interest rates. Quantitative easing may then be used by the monetary authorities to further stimulate the economy by purchasing assets of longer maturity than only short-term government bonds, and thereby lowering longer-term interest rates further out on the yield curve. Quantitative easing raises the prices of the financial assets bought, which lowers their yield. Quantitative easing can be used to help ensure that inflation does not fall below target. Risks include the policy being more effective than intended in acting against deflation – leading to higher inflation, or of not being effective enough if banks do not lend out the additional reserves.

Other forms of monetary policy, particularly used when interest rates are at or near 0% and there are concerns about deflation or deflation is occurring, are referred to as unconventional monetary policy. These include credit easing, quantitative easing, and signaling. In credit easing, a central bank purchases private sector assets, in order to improve liquidity and improve access to credit. Signaling can be used to lower market expectations for future interest rates. For example, during the credit crisis of 2008, the US Federal Reserve indicated rates would be low for an “extended period”, and the Bank of Canada made a “conditional commitment” to keep rates at the lower bound of 25 basis points (0.25%) until the end of the second quarter of 2010.

Bailout is a situation in which a business, individual or government offers money to a failing business in order to prevent the consequences that arise from a business's downfall. Bailouts can take the form of loans, bonds, stocks or cash.

Officially called the Emergency Economic Stabilization Act of 2008, this bailout bill surpassed any previous government bailout by hundreds of billions of dollars. The principal mandate of the legislation was to authorize the U.S. Treasury to buy risky and nonperforming debt from various lending institutions.

Part of the bill authorizes a cash infusion of $250 billion into the banking system to facilitate and encourage bank-to-bank loans and other types of lending. With the Treasury's purchase of a bank's or mortgage lender's bad debt, the resulting cash infusion will restore liquidity – and hopefully, confidence – to the banking system. Lending between banks and to consumers and business ventures is then expected to resume.

Funding for the rescue plan is expected to come from a variety of sources. The U.S. will "borrow" some of the money by issuing Treasury bonds and bills with short-, mid- and long-term maturities. The Treasury will also print additional currency, in an amount not yet determined, to help cover costs. If the amount of the currency printed is not excessive inflation should theoretically not result. The key federal interest rate is also expected to remain low, or may be cut even further, to encourage a favorable business environment, which theoretically will also help the economy. Finally, the news of the passage of the rescue bill was expected to boost consumer confidence – an individual's propensity to spend – and thus further stimulate the economy.