Benefits and costs of inflation targeting in Russia[Выгоды И Издержки Инфляционного Таргетирования В России]

The scientific report presents an assessment of the benefits and costs of the Russian economy as a result of the transition to the inflation targeting regime, analyzes its theoretical aspects, identifies the main characteristics, considers the transmission mechanism of monetary policy in the conditions of the inflation targeting regime. The authors analyzed the international experience of the functioning of economies under conditions of inflation targeting, on the basis of which the key prerequisites, conditions and consequences of the transition to this monetary policy regime were identified. The report presents the results of an analysis of the benefits and costs of the Bank of Russia transition to inflation targeting, as well as its correlation with the floating exchange rate regime. The success of the Russian experience of the transition to the inflation targeting regime lies in achieving inflation target, close to 4%. Nevertheless, the positive effects of lowering inflation will fully manifest themselves as inflationary expectations decrease and stabilize around the target level.