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The Transformation of the Role and Tasks of the Central Bank (Monetary Authorities) in the Modern Economy

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  • Kiyutsevskaya, Anna

    () (Gaidar Institute for Economic Policy, Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Narkevich, Sergei

    () (Gaidar Institute for Economic Policy)

  • Trunin, Pavel

    () (Gaidar Institute for Economic Policy, Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

Study of transformation of the role and tasks of central banks at different stages of economic development allows us to determine the objective conditions underlying the evolution of monetary policy. For developed economies, the opportunity to conduct independent monetary policy becomes one of the major factors that determine the choice of the monetary regime. In addition, according to the international experience, the choice of goals and objectives of central banks both at present time and in the historical perspective is greatly affected by the degree of financial openness of the country and the development of its financial sector. While countries become more integrated in the world economy, their central banks shifted priorities, firstly, to achieve and maintain price stability, and, secondly, to increase the flexibility of exchange rate formation. The findings on the evolution of the goals and objectives of the central banks of developed and developing countries reveal the most suitable monetary policy regime for the Russian central bank.

Suggested Citation

  • Kiyutsevskaya, Anna & Narkevich, Sergei & Trunin, Pavel, 2016. "The Transformation of the Role and Tasks of the Central Bank (Monetary Authorities) in the Modern Economy," Working Papers 2136, Russian Presidential Academy of National Economy and Public Administration.
  • Handle: RePEc:rnp:wpaper:2136
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    References listed on IDEAS

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    central banks; monetary policy;

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