Affiliation:
1. Russian Academy of Sciences (Moscow, Russia); advisor to the President of the Russian Federation
Abstract
The article discusses the fundamental issues of monetary policy in the context of implemented by the Bank of Russia transition to inflation targeting. It is shown that the result of the actions of the monetary authorities was the growth of inflation, worsening management of the financial market, falling investment and business activity, loss of control over the main macroeconomic indicators. It is revealed that “inflation targeting” actually refers to limiting the tools of monetary policy to manipulations by the key rate. It is proved that in conditions of free international movement of capital this approach does not achieve the inflation target due to supercritical dependence of the money market on foreign speculators. The necessity of a systematic approach to monetary policy with a set of control parameters corresponding to the complexity of monetary circulation is underlined.
Subject
Economics and Econometrics,Finance
Reference3 articles.
1. Nabiullina E. S. (2015). There is no goal on specific values of the ruble exchange rate. RBK, June 28. (In Russian).
2. Yudaeva K. (2014). On the opportunities, targets and mechanisms of monetary policy under the current conditions. Voprosy Ekonomiki, No. 9, pp. 4—12. (In Russian).
3. Obstfeld M., Shambaugh J. C., Taylor A. M. (2004). Monetary sovereignty, exchange rates, and capital controls: The trilemma in the interwar period. IMF Staff Papers, Vol. 51, Special Issue, pp. 75—108.
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12 articles.
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