Modeling of the interest rate policy of the central bank of Russia

This paper investigates interactions among money supply, exchange rates, inflation, and nominal interest rates, which are regulating parameters of the Central bank policy. The study is based on the data received from Russian source in 2002-2016. The major findings are 1) the interest rate demonstrat...

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Bibliographic Details
Main Authors: Shelomentsev, A. G., Berg, D. B., Detkov, A. A., Rylova, A. P.
Format: Conference Proceeding
Language:English
Subjects:
Central banks
Dynamic models
Economic models
Inflation
Interest rates
Online Access:Get full text
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Summary:This paper investigates interactions among money supply, exchange rates, inflation, and nominal interest rates, which are regulating parameters of the Central bank policy. The study is based on the data received from Russian source in 2002-2016. The major findings are 1) the interest rate demonstrates almost no relation with inflation; 2) ties of money supply and the nominal interest rate are strong; 3) money supply and inflation show meaningful relations only in comparison to their growth rates. We have developed a dynamic model, which can be used in forecasting of macroeconomic processes.
ISSN:0094-243X
1551-7616
DOI:10.1063/1.5012332