PHILOSOPHY OF FINANCIAL IMPACT

Abstract

Finance as a technology for managing money affects all social activities. Its role is decisive in many cases. Therefore this article studies the impact of finance on production, consumption and labour resources. Financial levers for economic stabilization of municipalities are examined in detail. An analysis is made of the vital importance of the financial policy of the state and firms, which is very closely related to the operations of the Central Bank and the commercial banks. In this regard proposals are made about differentiated taxation and changes in the banks’ balance sheets. The need for incessant improvement of techniques for mobilizing and spending money for the sake of a more effective financial impact is justified.