Importance Considering the unstable economic and political situation in the country, there still remain issues of effectiveness of the Central Bank’s monetary policy. Objectives The research analyzes, identifies and evaluates prospects and the need in measures undertaken by the Central Bank of Russia as part of inflation targeting. Methods The methodological framework includes a comparative approach and graphic analysis. The article analyzes historical practices of foreign exchange policies of the Central Bank of Russia and identifies why new economic leverage became necessary. Results As the research shows, the Central Bank of Russia faces a challenging issue of formulating its monetary policy. We found what caused structural surplus of liquidity. Conclusions and Relevance Upon the analysis, we formulated our recommendations. Currently, some uncertainty may be seen as to what measures will be taken within the coming three years to further stabilize the economy and situation in financial markets.
Keywords: inflation, targeting, Central Bank of Russia, monetary policy
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