IDEAS home Printed from https://ideas.repec.org/a/spr/sorede/v36y2025i2d10.1134_s107570072470062x.html
   My bibliography  Save this article

The Nature of Inflation in the Modern Russian Economy and Its Impact on Economic Growth

Author

Listed:
  • A. A. Shirov

    (Institute of Economic Forecasting, Russian Academy of Sciences)

  • M. S. Gusev

    (Institute of Economic Forecasting, Russian Academy of Sciences)

  • F. O. Nekrasov

    (Institute of Economic Forecasting, Russian Academy of Sciences)

Abstract

The article analyzes the situation in the Russian economy after the annual cycle of increasing the key rate in 2023–2024. It is shown that the key factors in accelerating price growth were the shift in the production structure that occurred in 2022–2024 and the associated imbalance in supply and demand. Against this background, the tightening of monetary policy had only a limited impact on price dynamics, which is typical not only for the Russian economy, but also for the economies of many countries around the world. The only factor that can change the situation on the domestic market could be an increase in supply, which is impossible with a low level of investment activity. Excessive monetary policy tightness in these conditions could halt the investment cycle in most sectors and lead to economic stagnation. An alternative is to revise inflation targets and implement a program to reduce inflation over a 3–5 year horizon.

Suggested Citation

  • A. A. Shirov & M. S. Gusev & F. O. Nekrasov, 2025. "The Nature of Inflation in the Modern Russian Economy and Its Impact on Economic Growth," Studies on Russian Economic Development, Springer, vol. 36(2), pages 149-160, April.
    • Handle: RePEc:spr:sorede:v:36:y:2025:i:2:d:10.1134_s107570072470062x
    DOI: 10.1134/S107570072470062X
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1134/S107570072470062X
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1134/S107570072470062X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sorede:v:36:y:2025:i:2:d:10.1134_s107570072470062x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.