History of reforms in the electricity sector spans over 40 years and a large number of countries. Following acquired experience and its analysis, changes were seen both in approaches to reforms’ organization in practice and in the theoretical underpinning of various elements of reforms. The paper aims at analyzing the main elements of electricity sector reforms in the context of their theoretical grounding, theoretically expected results and those achieved in practice as well as evolution of electricity sector reform approaches accounting for acquired experience. In their paper the authors provide classification of electricity sector reform models and of relevant research literature, and analyze reform experience in different segments of the electricity sector, namely: privatization and introduction of competition in generation; wholesale markets and their role in preventing market power abuse; ways to ensure appropriate investments in generation; various legal forms of system operators in energy transmission; and importance and questions of effective work of retail electricity markets. A separate section deals with the influence of renewables on optimal structure of the electricity sector. The analysis demonstrates a multiplicity of approaches to reforms of the electricity sector. Though the main elements of reforms (split of the sector into segments based on activities, restructuring and introduction of competition in generation, and creation of an independent system operator) were similar in many countries, realization of these elements in practice, their sequence and resulting organizational structures of the sector differed substantially. Thus, there is no unique most effective reform scheme—on the contrary, each country had its very own reform. The studied experience also suggests that electricity reform in any country has no end since social and technological changes demand constant reconsideration of the main principles of electricity markets, functioning in search of more effective and efficient mechanisms of management in all segments of the electricity sector.

The paper studies monetary policy (MP) under a zero lower bound (ZLB) on the basis of a DSGE model. The economy is open and highly dependent on the terms of trade (TOT). Dynamics are driven by a TOT shock and an external interest rate shock. The change in the transmission of these external shocks in the presence of ZLB is analyzed. Unlike developed economies, for resource-rich countries the ZLB problem becomes relevant during economic expansion when external economic conditions improve. Positive external shocks lead to strengthening of the national currency, a decrease in inflation and a decrease in interest rate under inflation targeting MP. The paper shows that, with an inflation target of 4% and no persistence in interest rates, a positive TOT shock of 1 standard deviation is sufficient to drive the economy into a ZLB. At the same time, if the economy faces ZLB, the impact of the shocks is reduced, since there is an increase in real interest rates, which restrains an increase in household consumption and, accordingly, aggregate demand. Optimal MP rules under the ZLB are analyzed. When conducting MP, it turns out to be optimal to maintain high inertia in interest rates and be less responsive to changes in inflation, which minimizes the likelihood of binding ZLB. Contrary to optimal MP rules, the current MP of the Bank of Russia, along with the inflation target of 4%, excludes the possibility of reaching the ZLB, but is far from the optimal degree of response to changes in inflation. It is also found that, under the current MP, the likelihood of reaching the effective lower bound (ELB) is quite significant.

This article is devoted to the applicability in the North Caucasus of various approaches to stimulating catch-up development. The paper highlights two similar approaches: “modernization from above,” based on public investments and state support of large private investments, and “modernization from below,” where the main driver is local business whereas the state creates conditions and eliminates barriers to its successful development. “Modernization from above,” which demonstrated its potential in the industrial era, has been seeing more and more serious failures in modern conditions, since it forms a distorted motivation among all participants in the process—federal and regional state bodies, development institutions, investors, local bodies and the population. This is confirmed by the unsatisfactory results of the implementation of the North Caucasus Development Strategy until 2025, based on this model. However, the inefficiency of “modernization from above” does not mean that a model of “modernization from below” may be implemented in the region. Our quantitative and qualitative research has shown that there are certain prerequisites for the success of “modernization from below” in the North Caucasus: a positive attitude of respondents towards entrepreneurship and its support by the state; the willingness of the local population to do business; and the potential of open social capital. At the same time, existing barriers, primarily related to the lack of human capital and the poor quality of the institutional environment, can hinder the success of any catch-up development policy. Therefore, the updated strategy for the development of the North Caucasus should not only be aimed at supporting local businesses, but also include measures to improve the quality of higher education in the region, as well as, along with the policy of improving the investment climate, contain tools to “buy out” administrative barriers.

The paper presents a new take on the Russian state-sanctioned inspections. Scheduled and surprise inspections interconnect. More so, they make up chains of events: a scheduled inspection can result in several surprise ones aimed at correcting the original violation. The paper defines these chains as continuous inspections. In order to prove this thesis, the paper demonstrates that some inspections are a continuous and uninterrupted affair, a constant interplay between an inspectorate and an inspected organization. The research uses a wide array of datasets showing the actual distribution of inspectorate activities by ownership of organizations, their size, and type of economic activity. The paper analyzes the limitations of a risk-oriented approach and its application. The research distinguishes between the inspectorates focusing on organizations and real estate objects belonging to these organizations. This delineation highlights the importance of considering the geographical distribution of inspectorates for providing a proper evaluation of their respective administrative workloads. The discussion analyzes the possible implications of the proposed framework. The current institutional setting provides minimal opportunities for optimization or targeting. Therefore, ignoring the continuous nature of the inspection leads to a distorted view of administrative workload. The improvement of the quality of rules and business processes is the key to the reform’s success.

The Gaidar Institute Publishing House has published a Russian translation of Joseph Vogl’s book “Calculation and Passion. The Poetics of the Economic Man.” The author, professor at Humboldt University in Berlin, philosopher, specialist in German literature and culture scholar, explores the relationship between the development of economic knowledge, economic rhetoric and literary texts. The economic activity of people began thousands of years ago, but the formation of disparate economic knowledge into an independent theoretical discipline actually began only in the 17–18th centuries in Europe. From Vogl’s point of view, the transition from simple registration and religious or ethical assessment of facts of economic life to the analysis of the motives of an individual’s actions, their interaction with other individuals and factors of decision-making under given conditions was largely prepared by the evolution of not only the ways of describing economic realities (for example, using dual-entry accounting) but also general methods of narration about human and social life. Rhetorical and expressive techniques, initially applied by European novelists and playwriters, proved to be in demand by the founders of political economy and understandable to their audience. Using numerous examples from European literary monuments, the book’s author shows how those methods of description and argumentation were gradually formed, which eventually made the economic view of man possible. In the development of Vogl’s logic, the paper also attempts to outline promising directions for studying the interaction of literature, art and economic thought in subsequent periods, against the background of the ongoing transformation of aesthetic ideals and methods of narration, affecting both artistic genres and scientific literature.