Demand for Money During Transition: The Case of Russia
During the transition to a market economy in Russia, the Bank of Russia assumed responsibility for setting and implementing monetary policy. As transition progressed, this involved establishing annual declining target rates for inflation and intermediate targets for the growth rate of M2 money aggregate. This paper tests the stability of long run and short run demand for money in Russia using M1 and M2 money aggregates. We find some evidence of stability, but the adjustment lag is relatively long and money demand functions demonstrate signs of instability over the period. We conclude that targeting interest rates could be a better policy option for the Bank of Russia.
|Date of creation:||22 Nov 2005|
|Date of revision:||22 Nov 2005|
|Contact details of provider:|| Postal: 3 Gagarinskaya Street, 191187 St. Petersburg|
Phone: +7 (812) 275-1130
Web page: http://www.eu.spb.ru/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Payne, 2003. "Post stabilization estimates of money demand in Croatia: error correction model using the bounds testing approach," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1723-1727.
When requesting a correction, please mention this item's handle: RePEc:eus:wpaper:ec0105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mikhail Pakhnin)
If references are entirely missing, you can add them using this form.