Subject The article addresses the exchange rate policy of the Bank of Russia. Objectives The aim is to examine special aspects of Bank of Russia's exchange rate policy decision to ensure macroeconomic stability in the country. Methods The study employs formal logic and systems approaches to analyze complex macroeconomic phenomena and processes. Results The study discloses modern theoretical concepts on relations of inflation with achieving 'full employment' and 'full production' in the economy; considers advantages and disadvantages of various exchange rate regimes and the use of a nominal anchor in the monetary policy as a means of maintaining the price level stability (a decline in inflation). It shows that it is difficult or practically impossible to use two nominal anchors simultaneously, i.e. the fixed exchange rate of the national currency and the fixed money supply the Bank of Russia (for Russia, it is equivalent to the concept of fixed value of base money in the narrow sense). The article includes the analysis of possible exchange rate policy of the Bank of Russia aimed at maintaining a balanced Federal budget, and highlights its strengths and weaknesses. Conclusions In Russia, the exchange rate of ruble acts as a tool to align the balance of payments and to balance the Federal budget. Meanwhile, it is difficult to achieve these two goals simultaneously at one rate of exchange of the national currency. Today, Russia uses the exchange rate regime, under which there is a complete balancing of the balance of payments.
Keywords: macroeconomic stability, monetary policy, exchange rate policy, inflation targeting, Bank of Russia
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