The Bank of Russia at the Crossroads: does the monetary policy needs easing
Recent slowdown of economic growth forces Russian political authorities to seek for policy measures to support economic activity. Monetary expansion is considered as one of the possible alternatives, which we consider inappropriate. During the whole post-crisis period monetary authorities of advances economies in their attempts to boost recovery relied heavily on different sorts of monetary stimulus. Thus it is sometimes argued that Russia should better use such kind of experience and shift to aggressive monetary expansion. This view is mostly wrong since it shows misunderstanding of the goals of the monetary easing policy implemented in advanced economies and also ignores the differences between Russia and advanced countries with respect to macroeconomic conditions. There are two main reasons for extraordinary monetary expansion in advanced economies: sizable cyclical recession and “zero lower bound” problem. Since none of these is present in Russia there’s no reason for implementation of monetary easing policy.
|Date of creation:||2013|
|Date of revision:||2013|
|Contact details of provider:|| Postal: 3-5 Gazetny lane, Moscow, 125009|
Phone: (495) 629-6413
Fax: (495) 203-8816
Web page: http://iep.ru/en.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:gai:wpaper:0067. 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: (Victor Hugues)
If references are entirely missing, you can add them using this form.