Glushchenko V.V., Glushchenko I.I. Innovations as the Structural Element of the Mechanism of Monetary and Credit Regulation in Economy

Abstract: The subject of the research is innovations as a structural element of the mechanism of monetary and credit regulation in economy. The object of the research is the monetary and credit regulation in economy. The hypothesis of the present research is that innovation activity is a structural element of the mechanism of monetary and credit regulation in economy based on the creation of the intellectual rent in the process of innovation. This creates the innovation monetary multiplier which is part of the mechanism of monetary and credit regulation under the conditions of the global crisis and causes deflation in the countries with the developed innovation activity and, at the same time, rise in inflation in the countries with the low level of innovation activity. The purpose of the present article was to study innovation activity as a structural element of monetary and credit regulatino under the conditions of the global financial crisis. In order to achieve the goal, the authors have solved the following research tasks: - they have analyzed the essence of monetary system and causes of inflation; - innovations as the source of the intellectual rent in economy; - essence and nature of functioning of innovations as part of the mechanism of monetary and credit regulation in economy under the conditions of the global financial crisis. The methods used in the present ersearch include logical and historical analysis, systems and anti-crisis analysis, synthesis, comparative analysis, inflation and deflation risk analysis. The scientific novelty of the research is caused by the fact that the author justifies the presence of the monetary innovation multiplier related to the intellectual rent. This innovation multiplier opposes the banking multiplier in economy which decreases the risk of the inflationary development, therefore innovations can be an element of the structural anti-inflationary policy. The authors analyze peculiarities of the influence of innovations on the process of credit and monetary regulatino under the conditions of the global financial crisis. 

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