AN ESTIMATION OF FUNDAMENTALLY SUBSTANTIATED REAL EXCHANGE RATE OF THE RUBLE

Alexandra Bozhechkova and Pavel Trunin

Russian Economic Development, 2015, issue 2, 65-67

Abstract: The key factor in the strengthening of the real exchange rate of the ruble in the 2000s was the transformation based growth of Russia’s economy (the Balassa–Samuelson eff ect) coupled with the improving foreign trade conditions. As can be concluded on the basis of data for Q4 2014, for the ruble’s real exchange rate to return to its fundamentally substantiated level, it was to be increased by 6.2%. In view of expectations of inflation in the RF and her trade partners at the rates of 12–14% and 3–4% respectively, the real effective exchange rate of the ruble in 8–11 months will return to its equilibrium level, if the nominal rate remains stable and the fundamental factors do not deteriorate.

Keywords: INFLATION; AND; MONETARY; POLICY (search for similar items in EconPapers)
JEL-codes: E52 P24 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.iep.ru/files/RePEc/gai/recdev/455Trunin.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gai:recdev:455

Access Statistics for this article

Russian Economic Development is currently edited by Alexei Vedev

More articles in Russian Economic Development from Gaidar Institute for Economic Policy Contact information at EDIRC.
Bibliographic data for series maintained by Olga Beloborodova ( this e-mail address is bad, please contact ).