«Public Administration Issues» Journal,

Post. address:
National Research University
Higher School of Economics
20 Myasnitskaya Str., Moscow 101000, Russian Federation
Location address:
of. 307, 4/2, Slavyanskaya sq., Moscow 109074, Russian Federation

Tel./fax: 7 (495) 772-95-90, ext. 12631

E-mail: vgmu@hse.ru 


Major Indexing

Research and educational journal
Published quarterly since 2007
ISSN 1999-5431
E-ISSN 2409-5095

Mstislav Afanasyev1,2, Nataliya Shash3
  • 1 National Research University Higher School of Economics, 20 Myasnitskaya Str., Moscow, 101000, Russian Federation
  • 2 Doctor of Economics, Professor of Public Finance, Politics and Governance Department National Research University Higher School of Economics (HSE); Chief research fellow, Institute for economic forecasting, Russian Academy of Sciences.
  • 3 Doctor of Economics, Professor, Department of Sustainable Development Finance, Russian University of Economics named after G.V. Plekhanov (PRUE), 36 Stremyanny Per., 117997 Moscow, Russian Federation.


2016. No. 5. P. 46–59 [issue contents]
The paper represents a complex analysis of public debt as one of the major tools of microeconomic policy, through which a modern state can directly or indirectly affect the condition and development of the national economy.
The analysis results are given for modern concepts explaining how the amount of public debt affects microeconomic development. It is shown that a growing public debt may cause both a positive and a negative effect on microeconomic processes, which makes it possible to reach a conclusion about the contradictory character of debt funding the economy.
The essence and nature of the Russian Federation’s public debt is revealed as an important component of the Russian economy’s operating mechanism at the present time.
The RF public debt dynamics are presented and projected values of its growth are given for the years 2016–2018.
A brief description of the characteristics of RF debt policy is provided. It is noted that one of its objectives for the next few years is the need to adapt to the changing conditions in the external and domestic financial markets.
One hazard of growing public debt is identified given the structural misbalances and external economic shocks, since it may result in a bigger dependence of the national economy on external  and internal borrowings, which, in turn, will provoke additional risks for the development of the Russian economy.
It is shown that in the countries with developing markets, growing public borrowings may cause negative macroeconomic consequences. It is proven that in order to enhance the stimulating effect of public debt on the macroeconomic processes the state needs to develop an efficient debt strategy, which would clearly define the economic boundaries of public debt use.

Citation: Afanasiev, M.P. & Shash, N.N. (2016). Microeconomic Effects of Growing Public Debt on the Russian Economy. Public Administration Issues, no 5 (Special Issue, electronic edition),
pp. 46–59 (in English).
ISSN 1999-5431
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