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The Analysis of Money Supply Endogeneity in Russia

Author

Listed:
  • Trunin, P.

    (Gaidar Institute for Economic Policy, Moscow, Russia
    Center for Study of Central Banks' Issues, Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia)

  • Vashchelyuk, N.

    (Center for Study of Central Banks' Issues, Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia)

Abstract

The authors provide a comparative analysis of money supply in Russia before and after Global financial crisis with investigation of its correspondence to the Post-Keynesian endogenous money view. Our results show that during the pre-crisis period bank credit was determined by volume of liquidity generated as a result of central bank's interventions. However there is no causality between money supply and bank credit after 2008 financial crisis. This finding may be explained by the change in the monetary policy stance. The transformation of central bank role should be considered in designing the system of financial regulation and the monetary policy framework.

Suggested Citation

  • Trunin, P. & Vashchelyuk, N., 2015. "The Analysis of Money Supply Endogeneity in Russia," Journal of the New Economic Association, New Economic Association, vol. 25(1), pages 103-131.
    • Handle: RePEc:nea:journl:y:2015:i:25:p:103-131
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    money supply factors; endogenous money supply theory; monetary policy transmission; inflation targeting; money multiplier;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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