The Monetary Policy Rules For Russia Economics Essay
The objective of this paper is to discover the key goals of the Central Bank of Russia (CBR) and describe the monetary policy rules. I will focus on the period during 1993 – 2008. This time range was chosen because of the availability of the data as well as the fact that there is no such research on this subject during this particular period.
Previous analysis of the problems of monetary policy in Russia showed that the process, which determines the equilibrium in the money market, the relationship between the real and the financial sectors of the economy and the dynamics of prices have changed  . Therefore, a more in depth analysis of the different aspects of the monetary policy should be prepared.
There are very few papers (both theoretical and empirical) written on the monetary policy rules for Russia in the recent years. Most of the articles on this subject covered the period before 2000. Therefore, we must mention that most of the relevant empirical research is out of date so these papers should be used only when describing the general theory of monetary policy and its rules.
The main problems of studying the monetary policy are the questions of following particular rules, the Central Bank independence, the relation between goals and instruments of the monetary policy. Theoretical discussions on these subjects began in the works of Keynes, Friedman, Lucas and Sargent, but many questions still do not have a certain answer. The key problem is the choice of the optimal monetary policy in a particular economic environment. Depending on the situation, different goals and instruments are chosen, the preference to certain rule is given, the limits of the monetary policy and its relationship to fiscal policy are described. Because the monetary policy is one of the key instruments of the country in order to regulate the economy, its strategic goals are the same as the...