Feedback to the ECB's Monetary Analysis: The Bank of Russia's Experience with Some Key Tools

63 Pages Posted: 24 Sep 2012

See all articles by Alexey A. Ponomarenko

Alexey A. Ponomarenko

Central Bank of Russia

Elena Vasilieva

Central Bank of Russia

Franziska Schobert

Deutsche Bundesbank

Date Written: September 12, 2012

Abstract

The paper investigates to what extent some basic tools of the ECBs monetary analysis can be useful for other central banks given their specific institutional, economic and financial environment. We take the case of the Bank of Russia in order to show how to adjust methods and techniques of monetary analysis for an economy that differs from the euro area as regards, for instance, the role of the exchange rate, the impact of dollarization and the functioning of sovereign wealth funds. A special focus of the analysis is the estimation of money demand functions for different monetary aggregates. The results suggest that there are stable relationships with respect to income and wealth and to a lesser extent to uncertainty variables and opportunity costs. Furthermore, the analysis also delivers preliminary results of the information content of money for inflation and for real economic development.

Keywords: money demand, transition countries, cointegration analysis, inflation, real economic activity

JEL Classification: E41, E52, E58

Suggested Citation

Ponomarenko, Alexey A. and Vasilieva, Elena and Schobert, Franziska, Feedback to the ECB's Monetary Analysis: The Bank of Russia's Experience with Some Key Tools (September 12, 2012). ECB Working Paper No. 1471, Available at SSRN: https://ssrn.com/abstract=2145295 or http://dx.doi.org/10.2139/ssrn.2145295

Alexey A. Ponomarenko (Contact Author)

Central Bank of Russia ( email )

12 Neglinnaya Street
Moscow, 107016
Russia

HOME PAGE: http://http.//www.cbr.ru

Elena Vasilieva

Central Bank of Russia ( email )

12 Neglinnaya Street
Moscow, 107016
Russia

HOME PAGE: http://www.cbr.ru

Franziska Schobert

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

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