Analysis of the Relationship Between the Exchange Rate Policy of the Russian Central Bank and the Interest Rates: Uncovered and Covered Parity

Evsey Gurvich, Vladimir Sokolov and Alexey Ulyukaev
Additional contact information
Evsey Gurvich: Economic Expert Group, Moscow, Russia
Alexey Ulyukaev: Bank of Russia

Journal of the New Economic Association, 2009, issue 1-2, 104-126

Abstract: An important condition for the transition to the free float and inflation targeting regime is the ability of the Russian Central Bank to pursue an active independent policy of interest rate adjustment. The purpose of this investigation is to analyze the effect produced by the exchange rate policy of the Russian Central Bank on the money market and to assess the sensitivity of domestic interest rates to foreign rates through the covered and uncovered interest rate parities. Assessment of variations in the coefficients of the tested relationships at different stages of the Russian Central Bank's exchange rate policy will allow judging the success of the institutional development which prepares a gradual transition to free float and inflation targeting.

Keywords: Exchange rate regimes; interest rate parity; non-deliverable forwards (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econorus.org/journal/pdf/Gurvich_Sokolov_Ulyukaev_1-2.pdf (application/pdf)
http://www.econorus.org/repec/journl/2009-1-2-104-126r.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:nea:journl:y:2009:i:1-2:p:104-126

Access Statistics for this article

Journal of the New Economic Association is currently edited by Victor Polterovich and Aleksandr Rubinshtein

More articles in Journal of the New Economic Association from New Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Alexey Tcharykov ().