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Network structure of the economy and the propagation of monetary shocks: The case of Russia

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  • Deryugina, Elena
  • Leonidov, Andrey
  • Ponomarenko, Alexey
  • Radionov, Stanislav
  • Vasilyeva, Ekaterina

Abstract

We calibrate a network model and monetary shocks based on empirical data from input-output tables for the Russian economy. We examine various aspects of the propagation of monetary shocks, such as the dispersion of relative prices and the local peak values of the aggregated price index achieved during the convergence to the new equilibrium. We show that these developments depend significantly on the way new money is injected into the economy.

Suggested Citation

  • Deryugina, Elena & Leonidov, Andrey & Ponomarenko, Alexey & Radionov, Stanislav & Vasilyeva, Ekaterina, 2024. "Network structure of the economy and the propagation of monetary shocks: The case of Russia," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 315-319.
    • Handle: RePEc:eee:streco:v:71:y:2024:i:c:p:315-319
    DOI: 10.1016/j.strueco.2024.08.006
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    References listed on IDEAS

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    1. Michael Weber & Ali Ozdagli, 2016. "Monetary Policy Through Production Networks: Evidence from the Stock Market," 2016 Meeting Papers 148, Society for Economic Dynamics.
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    Keywords

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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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