Keywords
Money demand; transition countries; cointegration analysis; inflation;real economic activity
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.
Acknowledgments
Thanks are due to Julian von Landesberger, Björn Fischer, an anonymous referee and the participants of the ”ECB-Bank of Russia Workshop on Monetary Analysis” for valuable comments. The views expressed are those of the authors and do not necessarily represent the views of the Bank of Russia or the Deutsche Bundesbank.
Recommended Citation
Ponomarenko, A., Vasilieva, E., & Schobert, F. (2024). Feedback to the ECB’s Monetary Analysis: The Bank of Russia’s Experience with Some Key Tools. Journal of Banking and Financial Economics, 2014(2), 116-150. https://doi.org/10.7172/2353-6845.jbfe.2014.2.5
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