The Bank of Russia at the Crossroads: does the monetary policy needs easing

Evgeny Gorunov and Pavel Trunin
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Evgeny Gorunov: Gaidar Institute for Economic Policy
Authors registered in the RePEc Author Service: Eugene Goryunov

Working Papers from Gaidar Institute for Economic Policy

Abstract: Recent slowdown of economic growth forces Russian political authorities to seek for policy measures to support economic activity. Monetary expansion is considered as one of the possible alternatives, which we consider inappropriate. During the whole post-crisis period monetary authorities of advances economies in their attempts to boost recovery relied heavily on different sorts of monetary stimulus. Thus it is sometimes argued that Russia should better use such kind of experience and shift to aggressive monetary expansion. This view is mostly wrong since it shows misunderstanding of the goals of the monetary easing policy implemented in advanced economies and also ignores the differences between Russia and advanced countries with respect to macroeconomic conditions. There are two main reasons for extraordinary monetary expansion in advanced economies: sizable cyclical recession and “zero lower bound” problem. Since none of these is present in Russia there’s no reason for implementation of monetary easing policy.

Keywords: monetary policy; Bank of Russia (search for similar items in EconPapers)
JEL-codes: E41 E42 E52 E58 E61 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013, Revised 2013
New Economics Papers: this item is included in nep-cis, nep-mac, nep-mon and nep-tra
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Citations: View citations in EconPapers (2)

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https://www.iep.ru/files/RePEc/gai/wpaper/0067Trunin.pdf Revised version, 2013 (application/pdf)

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Working Paper: The Bank of Russia at the Crossroads: Does the Monetary Policy Needs Easing (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:gai:wpaper:0067

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