Monetary Policy in Russia: Recent Challenges and Changes

Abstract

Increasing trade and financial flows between the world’s countries has been a double-edged sword for emerging market economies (EMEs). On the one hand, it has given EMEs ample opportunities to benefit from world economic growth and from the significant financial resources accumulated by developed countries. On the other hand, EMEs have become more vulnerable to shocks in global financial markets, the origins, scope and size of which are often beyond the control of EME governments and monetary authorities. This paper describes the specific set of external and internal conditions the Bank of Russia has had to take into account, as well as some features of its monetary policy and the way these have evolved in recent years to cope with the challenges posed by a changing external environment.

Full publication: The Transmission of Unconventional Monetary Policy to the Emerging Markets

Keywords: Money supply, liquidity, intervention, Russia

JEL Classification: E 58, E52, E51, F31