Ramazanov S.A.Nizhny Novgorod State Technical University n.a. R.E. Alekseev, Nizhny Novgorod, Russian Federation ram-nn@yandex.ru
Odinokov V.A.Nizhny Novgorod State Technical University n.a. R.E. Alekseev, Nizhny Novgorod, Russian Federation odvl-nn@yandex.ru
Makovetskaya T.V.Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation tat915955@yandex.ru
Subject The subject of the study is the analysis of assets and liabilities of the central banks of BRICS countries during the period from 2003 to 2013. Objectives The objective of the study is to reveal the specifics of monetary credit policy of the central banks of BRICS countries from the perspectives of emission and absorption of money supply. Methods In this study, we applied the methods of horizontal and structural analysis. We also used comparisons to detect similarities or differences in implementing the monetary policy by the financial regulators of the said countries. Results We substantiated the need for transition to non-inflationary ways of currency issue by reducing excess currency reserves. However, we failed to reveal interaction between the asset structure of central banks and main macroeconomic indicators. The obtained results can be used not only for monetary policy purposes, but also for implementing anti-crisis and anti-inflationary policies in general. Conclusions and Relevance This study allowed us to make several important conclusions. First, the structural analysis of assets of the central banks of BRICS countries confirms that they have excess currency reserves, which do not serve as a 'safety cushion' in the financial crisis conditions, and which are the result of export stimulation. Therefore, the monetary policy of central banks of these countries reduces the impact of interest rate channel on the economy in exchange for an increase in currency regulation. The transition from the currency channel of creating money to the interest rate channel, to a greater extent, contributes to the development of the real sector of economy. Secondly, the analysis of active operations of central banks of the BRIC countries enabled to come to a conclusion that currency issue in China and Russia is carried out in inflationary ways. Building currency reserves in exchange for an increase in other assets promotes development of the real sector of economy. The big share of currency reserves in balance sheets of financial regulators of BRICS countries may be the evidence of unused investment potential for economic development. At the same time, the asset structure of the central banks of Brazil and India with a relatively smaller share of currency reserves discourages inflationary processes in economy. Thirdly, the carried out horizontal analysis of the main components of liabilities in the balance sheets of the national monetary regulators showed different approaches to banknote and deposit issue.
Keywords: central bank, balance sheet, assets, liabilities, information, currency reserves, financial crisis
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