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On the Exchange Rate Policy

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  • K. Yudaeva

Abstract

The level of trust in the local currency in Russia is very low largely because of relatively high inflation. As a result, Bank of Russia during crisis times can not afford monetary policy loosening and has to fight devaluation expectations. To change the situation in the post-crisis period Russia needs to live through a continuous period of low inflation. Modified inflation targeting can help achieve such a result. However, it should be amended with institutional changes, particularly development of hedging instruments.

Suggested Citation

  • K. Yudaeva, 2010. "On the Exchange Rate Policy," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 1.
    • Handle: RePEc:nos:voprec:y:2010:id:968
    DOI: 10.32609/0042-8736-2010-1-21-28
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