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The ruble exchange rate: What is the preferable level?

Author

Listed:
  • M. V. Yershov

    (Financial University under the Government of the Russian Federation)

  • Anna S. Tanasova

    (Financial University under the Government of the Russian Federation)

  • Viktor Yu. Tatuzov

    (Financial University under the Government of the Russian Federation)

Abstract

The sanctions against Russia enforced by the USA in 2018 have increased the relevance of the issues related to the preferable ruble exchange rate, which could accelerate national economic growth and improve its qualitative characteristics. The paper researchers the problems of the Russian ruble tran? sition to free floating and inflation targeting and a subsequent increase in volatility of its exchange rate. Methodologically the paper relies on fundamental propositions of macroeconomics and the theory of inflation. Statistical methods are used. The authors review the approaches to forming strategic reference points for currency exchange rates in a number of countries, reveal methodological, and applied bases for determining rational limits of the ruble exchange rate. The authors develop a theoretical approach to inflation as a multi-factor phenomenon and justify the preferable deviation of the nominal ruble ex? change rate from the purchasing power parity ruble exchange rate. These conclusions are made on the basis of the analysis of the Russian inflation and the role of the exchange rate factor in pricing. The sug? gested approaches to the problem studied will allow determining the directions for improvement of the exchange rate policy. The authors argue that making the ruble space more stable appears to be crucial for creation of the comfortable investment environment and elaborate on the measures targeted at stabilisa? tion of the ruble exchange rate.

Suggested Citation

  • M. V. Yershov & Anna S. Tanasova & Viktor Yu. Tatuzov, 2018. "The ruble exchange rate: What is the preferable level?," Journal of New Economy, Ural State University of Economics, vol. 19(6), pages 16-32, December.
    • Handle: RePEc:url:izvest:v:19:y:2018:i:6:p:16-32
    DOI: 10.29141/2073-1019-2018-19-6-2
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    References listed on IDEAS

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    1. Irving B. Kravis & Robert E. Lipsey, 1991. "The International Comparison Program: Current Status and Problems," NBER Chapters, in: International Economic Transactions: Issues in Measurement and Empirical Research, pages 437-468, National Bureau of Economic Research, Inc.
    2. Maurice Obstfeld & Kenneth Rogoff, 1995. "The Mirage of Fixed Exchange Rates," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 73-96, Fall.
    3. Robert Boyer & Jean-Pascal Benassy & Rosa-Maria Gelpi, 1979. "Régulation des économies capitalistes et inflation," Revue Économique, Programme National Persée, vol. 30(3), pages 397-441.
    4. Morris Goldstein & Nicholas R. Lardy (ed.), 2008. "Debating China's Exchange Rate Policy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4150, April.
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    Cited by:

    1. Mikhail V. Ershov & Anna S. Tanasova & Elena Yu. Sokolova, 2020. "Strengthening the role of public governance approaches to ensure sustainable economic growth," Upravlenets, Ural State University of Economics, vol. 11(6), pages 15-27, December.

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    More about this item

    Keywords

    economic growth; currency exchange rate; purchasing power parity; exchange rate regime; inflation targeting; exchange rate volatility.;
    All these keywords.

    JEL classification:

    • A31 - General Economics and Teaching - - Multisubject Collective Works - - - Multisubject Collected Writings of Individuals
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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