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Some Aspects of Monetary Policy Optimization
[О Некоторых Аспектах Оптимизации Денежно-Кредитной Политики]

Author

Listed:
  • Dmitry N. Shults

    (Infrastructure Economics Centre)

  • Zarina E. Tsokolaeva

    (Infrastructure Economics Centre)

Abstract

The article is devoted to possible directions of improving monetary policy in Russia. First, various variants of the targeting object are considered. Model studies on the optimization of monetary policy parameters indicate the need to target the most inflexible components of inflation, which make the greatest contribution to the loss of market efficiency. The technical aspects of the optimization of monetary policy based on the apparatus of general equilibrium models are considered. Finally, the issue of improving monetary policy through the transition to hybrid inflation targeting is considered.

Suggested Citation

  • Dmitry N. Shults & Zarina E. Tsokolaeva, 2022. "Some Aspects of Monetary Policy Optimization [О Некоторых Аспектах Оптимизации Денежно-Кредитной Политики]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 3, pages 9-21, March.
    • Handle: RePEc:gai:recdev:r2224
    as

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    References listed on IDEAS

    as
    1. Michael B. Devereux & Philip R. Lane & Juanyi Xu, 2006. "Exchange Rates and Monetary Policy in Emerging Market Economies," Economic Journal, Royal Economic Society, vol. 116(511), pages 478-506, April.
    2. Jordi Galí & Tommaso Monacelli, 2005. "Monetary Policy and Exchange Rate Volatility in a Small Open Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 707-734.
    3. Erceg, Christopher J. & Henderson, Dale W. & Levin, Andrew T., 2000. "Optimal monetary policy with staggered wage and price contracts," Journal of Monetary Economics, Elsevier, vol. 46(2), pages 281-313, October.
    4. Divino, Jose Angelo, 2009. "Optimal monetary policy for a small open economy," Economic Modelling, Elsevier, vol. 26(2), pages 352-358, March.
    5. E. Vakulenko & E. Gurvich., 2015. "The Relationship of GDP, Unemployment Rate and Employment: In-depth Analysis of Okun’s Law for Russia," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 3.
    6. Jordi Galí, 2008. "Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework," Introductory Chapters, in: Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press.
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    More about this item

    Keywords

    monetary policy; monetary policy optimization; inflation targeting; hybrid inflation targeting;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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