The Influence of Oil and Gas Revenues on Russia’s Monetary and Credit Policy

Alexei Kudrin

Working Papers from Gaidar Institute for Economic Policy

Abstract: This article examines the problems of implementing monetary and credit policy when there is significant flow of currency revenues from the export of raw materials. It argues that, given a strong balance of payments, the Central Bank has to accept either a strengthening of the rouble or inflation. Only the RF Government has the power to prevent an appreciation of the currency whilst at the same time controlling inflation. This dual task can be achieved by saving, when external economic conditions are favourable, a share of the revenues from oil and gas in reserve funds. Such a policy can create the foundations for macroeconomic stability and a favourable investment climate.

Keywords: monetary and credit policy; oil and gas dependency “Dutch disease”; reserve fund; inflation (search for similar items in EconPapers)
JEL-codes: E52 E58 E61 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013, Revised 2013
New Economics Papers: this item is included in nep-cis, nep-ene, nep-mac, nep-mon and nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.iep.ru/files/RePEc/gai/wpaper/0066Kudrin.pdf Revised version, 2013 (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:wpaper:0066

Access Statistics for this paper

More papers in Working Papers from Gaidar Institute for Economic Policy Contact information at EDIRC.
Bibliographic data for series maintained by Aleksei Astakhov ().