•  
  •  
 

Abstract

The paper investigates to what extent some basic tools of the ECBs monetary analysis can be useful for other central banks given their specific institutional, economic and financial environment. We take the case of the Bank of Russia in order to show how to adjust methods and techniques of monetary analysis for an economy that differs from the euro area as regards, for instance, the role of the exchange rate, the impact of dollarization and the functioning of sovereign wealth funds. A special focus of the analysis is the estimation of money demand functions for different monetary aggregates. The results suggest that there are stable relationships with respect to income and wealth and to a lesser extent to uncertainty variables and opportunity costs. Furthermore, the analysis also delivers preliminary results of the information content of money for inflation and for real economic development.

First Page

116

Last Page

150

Page Count

35

Received Date

19 May 2014

Revised Date

09 August 2014

Accept Date

29 October 2014

Online Available Date

19 November 2014

DOI

10.7172/2353-6845.jbfe.2014.2.5

JEL Code

E41; E52; E58

Publisher

University of Warsaw

Share

COinS