Economic growth and monetary policy in Russia

Sergey Yu. Glazyev and Oleg S. Sukharev
Additional contact information
Sergey Yu. Glazyev: Russian Academy of Sciences, Moscow, Russia
Oleg S. Sukharev: Institute of Economics of RAS, Moscow, Russia

Journal of New Economy, 2025, vol. 26, issue 1, 6-30

Abstract: Modern growth models often overlook such growth determinants as the presence of structural constraints and the influence of monetary policy instruments, which requires appropriate research with the employment of empirical methods of analysis that allow clarifying the emerging and disrupted relationships between the relevant parameters of economic growth. The purpose of the study is to determine the impact of basic monetary policy instruments on Russian economic growth and inflation over a long time interval, on the components of GDP and the sectoral structure represented by processing, raw materials and transaction sectors. The methodology rests on the neo-Schumpeterian growth theory. The methods of empirical, regression and structural analysis are used. The evidence is the 2000–2023 data coming from the Federal State Statistics Service of the Russian Federation and the Bank of Russia. The paper finds that monetary policy instruments had different effects on the dynamics of GDP, its components, and basic sectors of the economy. In particular, an increase in monetisation contributed to economic growth, while an increase in the key interest rate had the opposite effect and did not provide a noticeable suppression of inflation. Simultaneously with the effect of demand restraint, the effect of supply “degradation” occurred, provoking a large amount of costs and inflationary pressure. The established difference in the impact of monetary and budgetary policy instruments on the sectoral structure and components of GDP confirms the need to change the content of these types of policies.

Keywords: economic growth; GDP structure; sectoral structure of the economy; key interest rate; monetisation; budget deficit; monetary policy; risk (search for similar items in EconPapers)
JEL-codes: O11 O43 O47 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://jne.usue.ru/images/download/106/1a.pdf (application/pdf)
https://jne.usue.ru/en/issues-2025/1591 (text/html)

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:url:izvest:v:26:y:2025:i:1:p:6-30

DOI: 10.29141/2658-5081-2025-26-1-1

Access Statistics for this article

Journal of New Economy is currently edited by Yelizaveta A. Belousova

More articles in Journal of New Economy from Ural State University of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Victor Blaginin ().