A Preliminary Evaluation of Monetary Policy Rules for Russia
Kiel Working Paper No. 1201
28 Pages Posted: 1 Apr 2004
Date Written: March 2004
The paper reviews the recent conduct of monetary policy and the central bank's rule-based behavior in Russia. Using different policy rules, we test whether the central bank in Russia reacts to changes in inflation, output gap and the exchange rate in a consistent and predictable manner. Our results indicate that during the period of 1993-2002 the Bank of Russia has used monetary aggregates as a main policy instrument in conducting monetary policy.
Keywords: Monetary policy rules; exchange rate; central bank; Russia
JEL Classification: E52, E61, F33, F41
Suggested Citation: Suggested Citation