Impact of monetary policy of the central bank on the economic growth in Russia in the conditions of unstable economy

Abstract

The purpose of this Article is to identify major trends in monetary management and to analyze the main directions in monetary policy of the Bank of Russia and their correspondence to Russia’s economic and political realities. In the course of the research, statistical method was used as the basic one, as well as methods of scientific abstraction, analogy, comparison, and diagram analysis. The Article analyzes Russian practices of applying monetary policy tools by the Bank of Russia and evaluates the efficiency of this policy. The impact of monetary management tools on the scope of bank crediting to businesses and the pace of economic growth are investigated. The Author underlines negative aspects of the Bank of Russia’s policy based on the analysis of statistical data characterizing Russia’s economy status, and describes the effects of the Bank of Russia’s policy in regard to inflation targeting. In accordance with international experience and major tendencies in this area, there possible directions of improving Russia’s monetary policy are proposed, in particular, the shift of milestones towards achieving positive pace of economic growth and pursuing a double-purpose policy, which, in the Author’s opinion, is of paramount importance at the present stage of Russia’s economy development in the conditions of economic and political instability, crisis and shocks.