ON ROLE OF INFLATION TARGETING IN RUSSIAN ECONOMY PROGRESS OF LAST YEARS

Author of the article gives an explanation of Russian economy slowing down from 4 quarter 2011 till 3 quarter 2013. According to author reasoning the main problem of Russian economy throughout this period of time was growth of real interest rates. The growth of real interest rate is determined by monetary policy, conducted by Central Bank. The main priority of CB is fight against inflation, which is waged by liquidity shrinkage. The bottom-line is fall of inflation and interest rates growth (including lending rate). Real interest rates are growing drastically. In certain branches of economy (f... Mehr ...