Inflation and the Foreign Exchange Market
Russian Economic Developments, Moscow, No. 4, pp. 2-6, 2016
5 Pages Posted: 13 May 2016
Date Written: May 12, 2016
Over the period March 2015 – February 2016, the growth rate of prices declined to 8.1%, while the corresponding index for February 2015 – January 2016 amounted to 9.8%. As demonstrated by the results of a survey published by the Bank of Russia, in February the median inﬂation expectation index for the next year also declined by 1.0 p.p. to 15.7%. As shown by the year-end results for 2014–2015, the plunge of the nominal effective exchange rate of Russia’s national currency was much more dramatic than the downward movement of the national currencies of the other countries – exporters of raw materials, although their terms of trade were also deteriorating at a comparable rate.
Keywords: Russian Economy, Inflation, Foreign Exchange Market
JEL Classification: P24, E52
Suggested Citation: Suggested Citation