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Monetary Policy of Bank of Russia: Strategy and Tactics
https://doi.org/10.32609/0042-8736-2015-4-53-85
Abstract
In recent years Bank of Russia has made several major changes in its monetary regime, including elimination of the exchange rate corridor and introduction of the key rate as the main monetary policy instrument. The article discusses these developments in the context of long-term priorities of the monetary authority. We put emphasis on the extent to which monetary policy should stimulate economic growth and assess whether the policy of the Central Bank of RF was excessively tight in 2010-2014. In order to do that we use the real interest rate on short-term loans in the interbank market as an indicator of monetary policy tightness. Cross-country comparisons together with the analysis of dynamics of selected indicators suggest that Bank of Russia’s policy was rather soft. We conclude with comments regarding tactics of monetary policy under current turbulent macroeconomic conditions.
Keywords
monetary policy,
economic growth,
inflationary expectations,
inter-bank market,
foreign exchange market
JEL: E31, E42, E43, E44, E52, E58, E61, F31, G18
About the Authors
E. Goryunov
Gaidar Institute for Economic Policy (Moscow, Russia)
Russian Federation
Russian Federation
S. Drobyshevsky
Gaidar Institute for Economic Policy (Moscow, Russia); Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia)
Russian Federation
Russian Federation
P. Trunin
Gaidar Institute for Economic Policy (Moscow, Russia); Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia)
Russian Federation
Russian Federation
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For citations:
Goryunov E., Drobyshevsky S., Trunin P. Monetary Policy of Bank of Russia: Strategy and Tactics. Voprosy Ekonomiki. 2015;(4):53-85. (In Russ.) https://doi.org/10.32609/0042-8736-2015-4-53-85
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