|Generate QR code
Open Access
Subscription Access
Inflation targeting in the world economy and in Russia
https://doi.org/10.32609/0042-8736-2019-6-5-29
Abstract
The authors, analyzing features of realization of monetary policy under inflation targeting, show that its application and evolution are based on the objective reasons related to a decrease of consumer prices growth rates all over the world and an increase of the integration of the world economy. It led to the ineffectiveness of other monetary policy regimes in open economies. It is true also for the Russian economy that has passed the way from financial mechanisms of centralized economy to inflation targeting. Its approaches and instruments have been adjusted in accordance with Russian realities. The authors show that application of inflation targeting regime in Russia along with other measures of macroeconomic policy have become one of the elements of the system of maintaining financial stability after the 2014 currency crisis.
Keywords
inflation targeting,
monetary policy,
Bank of Russia,
world economy,
key rate,
inflation,
exchange rate policy
JEL: E42; E44; E52; F36; F38
About the Authors
Boris A. ZamaraevRussian Federation
Moscow
Anna M. Kiyutsevskaya
Russian Presidential Academy of National Economy and Public Administration
Russian Federation
Moscow
Russian Federation
Moscow
References
1. Bank of Russia (2004). Guidelines for the single state monetary policy for 2005. (In Russian).
2. Bank of Russia (2007). Guidelines for the single state monetary policy in 2008. (In Russian).
3. Bank of Russia (2008). Guidelines for the single state monetary policy in 2009 and for 2010 and 2011. (In Russian).
4. Bank of Russia (2013). Guidelines for the single state monetary policy in 2014 and for 2015 and 2016.
5. Bank of Russia (2014). Guidelines for the single state monetary policy in 2015 and for 2016 and 2017.
6. Bank of Russia (2015). Guidelines for the single state monetary policy in 2016 and for 2017 and 2018.
7. Borisova I., Zamaraev B., Kozlova I., Nazarova A., Sukhanov E. (2016). Russian economy under the pressure of sanction and cheap oil. Voprosy Ekonomiki, No. 7, pp. 5—35. (In Russian). https://doi.org/10.32609/0042-8736-2016-7-5-35
8. Drobyshevskiy S., Kiyutsevskaya A., Truni n P. (2016). Central banks’ mandate and objectives: Evolution and the crisis lessons. Vo pro s y Ekonomiki, No. 5, pp. 5—24. (In Russian). https://doi.org/10.32609/0042-8736-2016-5-5-24
9. Kartaev Ph. (2017). Is inflation targeti ng useful for economic growth? Voprosy Ekonomiki, No. 2, pp. 62—74. (In Russian).] https://doi.org/10.32609/0042-8736-2017-2-62-74
10. Kiyutsevskaya A. M., Trunin P. V. (2017). Exchange rate policy in the framework of inflation targeting: World practice and Bank of Russia actions. Dengi i Kredit, No. 5, pp. 32—39. (In Russian).
11. Ponomarev Yu., Trunin P., Ulyukaev A. (2014). Exchange rate pass-through in Russia. Voprosy Ekonomiki, No. 3, pp. 21—35. (In Russian). https://doi.org/10.32609/0042-8736-2014-3-21-35
12. Trunin P. V., Bozhechkova A. V., Kiyutsevskaya A. M. (2015). Inflation targeting: What does the world experience say? Dengi i Kredit, No. 4, pp. 61—67. (In Russian).
13. Aliyev I. (2012). Is fiscal policy procyclical in resource-rich countries? CERGE-EI Working Paper Series, No. 464.
14. Aliyev R. (2012). Monetary policy in resource-rich developing economies. CERGE-EI Working Paper Series, No. 466.
15. Aizenman J., Chinn M. D., Ito H. (2015). Monetary policy spillovers and the trilemma in the new normal: Periphery country sensitivity to core country conditions. NBER Working Paper, No. 21128.
16. Benkhodja M. T. (2011). Monetary policy and the Dutch disease in a small open oil exporting economy. Gate Working Paper, No. 1134.
17. Bernanke B. S., Mishkin F. S. (1997). Inflation targeting: A new framework for monetary policy? Journal of Economic Perspectives, Vol. 11, No. 2, pp. 97—116.
18. Choudri E., Hakura D. (2001). Exchange rate pass-through to domestic prices: Does the inflationary environment matter? IMF Working Paper, No. WP/01/194.
19. Czech National Bank (2008). Ten years of inflation targeting. CNB Economic Research Bulletin, Vol. 6, No. rb06/1.
20. Devereux M., Yetman J. (2002). Price setting and exchange rate pass-through: Theory and evidence. In: Price adjustment and monetary policy. Ottawa: Bank of Canada, pp. 347—371.
21. Friedman B. M. et al. (1996). A price target for US monetary policy? Lessons from the experience with money growth targets. Brookings Papers on Economic Activity , Vol. 1996, No. 1, pp. 77—146.
22. Husain A. M., Tazhibayev K., Ter-Martirosyan A. (2008). Fiscal policy and economic cycles in oil-exporting countries. IMF Working Paper, No. WP/08/253.
23. IMF (2012). Macroeconomic policy frameworks for resource-rich developing countries. Washington, DC.
24. IMF (2019). Annual report on exchange rate arrangements and exchange restrictions. Washington, DC.
25. Judson R., Orphanides A. (1999). Inflation, volatility and growth. International Finance, Vol. 2, No. 1, pp. 117—138.
26. Kamil H. (2008). Is the central bank intervention effective under inflation targeting regimes? The case of Colombia. IMF Working Paper, No. WP/08/88.
27. Obstfeld M., Shambaugh J. C., Taylor A. M. (2004). The trilemma in history: Tradeoffs among exchange rates, monetary policies, and capital mobility. NBER Working Paper, No. 10396.
28. Orphanides A. (2010). Reflections on inflation targeting. In: D. Cobham, Ø. Eitrheim, S. Gerlach, J. F. Gvigstad (eds.). Twenty years of inf lation targeting: Lessons learned and future prospects(pp. 13—24). Cambridge etc.: Cambridge University Press.
29. Rey Н. (2018). Dilemma not trilemma: The global financial cycle and monetary policy independence. NBER Working Paper, No. 21162.
30. Svensson L. E. O. (2011). Monetary policy after the crisis. Speech at the conference “Asia’s role in the post-crisis global economy”, held at Federal Reserve Bank of San Francisco, November 29. https://www.bis.org/review/r111201a.pdf
31. Taylor A. M. (2010). Global finance after the crisis. Bank of England Quarterly Bulletin , Q4, pp. 366—377.
32. Taylor J. (2000). Low inflation, pass-through, and pricing power of firms. European Economic Review, Vol. 44, No. 7, pp. 1389—1408.
33. Vega M., Winkelried D. (2012). Inflation targeting and inflation behavior: A successful story? MPRA Paper, No. 838. https://mpra.ub.uni-muenchen.de/838/
34. Vinayagathasan Th. (2013). Inflation and economic growth: A dynamic panel threshold analysis for Asian economies. Journal of Asian Economics, Vol. 26, pp. 31—41.
Review
For citations:
Zamaraev B.A., Kiyutsevskaya A.M. Inflation targeting in the world economy and in Russia. Voprosy Ekonomiki. 2019;(6):5-29. (In Russ.) https://doi.org/10.32609/0042-8736-2019-6-5-29
Views:
2384
Email this article 
