Importance The paper focuses onthe issue of money in the Bank of Russia's operational system. Objectives The article aims to reveal the factors that affect the amount of money supply of the Bank of Russia and the measures to maintain the stability of the monetary base, in a narrow definition. Methods The study rests on the formal logic, systems approach, and analysis of statistical data. Results The paper examines the relationship between currency, credit and other transactions of the Bank of Russia with the process of cash money emission and a change in the magnitude of the monetary base, in a narrow definition. The paper shows a detailed mechanism for monetary sterilization using different instruments and the difficulty of targeting inflation in the context of managed currency float. Conclusions The Bank of Russia faces certain restrictions. Operations on purchase and sale of foreign currency, the need to maintain operations of the Government affect the change in the monetary base, in a narrow definition. However, the magnitude of the monetary base and the amount of cash in circulation are determinants of monetary inflation. At present, the Bank of Russia has actually refused to use a managed foreign exchange rate as a nominal anchor for maintaining the price level stability, thus getting a greater opportunity for maintaining stability in the amount of cash and monetary base, in a narrow definition.
Keywords: Bank of Russia, cash money, international reserves, targeting, stabilization mechanism
References:
Woodford M. [Inflation Targeting: Fix It, Don't Scrap It]. Voprosy Ekonomiki, 2014, no. 10, pp. 44–55. (In Russ.)
Kosukhin P.P. [Currency Issue in Bank System]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Papers of the Free Economic Society of Russia, 2010, vol. 136, pp. 277–283. (In Russ.)
Navoi A. [On the Role and Place of the Central Bank Money Emission in Reproduction Processes]. Voprosy Ekonomiki, 2009, no. 5, pp. 118–128. (In Russ.)
Rzhevskaya T.G. [The practice of creating a stabilization fund in Russia]. Finansovyi biznes = Financial Business, 2011, no. 2, pp. 8–11. (In Russ.)
Melikova L.A. [Theoretic foundations of the macroeconomic mechanisms of economy stabilization]. Nauchnoe obozrenie = Science Review, 2015, vol. 21, pp. 295–299. (In Russ.)
Mel'nikov V.V., Pershina M.N. [Formal rules' influence on the Bank of Russia's sterilizing operations and the consequences of their change]. TERRA ECONOMICUS, 2009, vol. 7, iss. 3, pp. 103–115. (In Russ.)
Petrishchev V.A. (ed.). Problemy vyzhivaniya i razvitiya ekonomiki Rossii: kollektivnaya monografiya [Issues of survival and development of the Russian economy: a collective monograph]. Tver, Tver State University Publ., 2015, 212 p. URL: Link
Polterovich V.M., Popov V.V., Tonis A.S. [Mechanisms of 'resource curse' and economic policy]. Voprosy Ekonomiki, 2007, no. 6, pp. 4–27. (In Russ.)
Sukharev A.N. [Macroeconomic policy oil states volatility in the oil prices]. Obshchestvo i ekonomika = Society and Economics, 2015, no. 4-5, pp. 35–43. (In Russ.)
Tavlas G.S. On the Exchange Rate as a Nominal Anchor: The Rise and Fall of Credibility Hypothesis. The Economic Record, 2000, vol. 76, no. 233, pp. 183–201. doi: 10.1111/j.1475-4932.2000.tb00016.x
Varnavskii V. [Stabilization fund as an instrument of economic policy of the government]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2007, no. 5, pp. 37–44. (In Russ.)
Plyshevskii B. [Stabilization fund: Usage issues]. Ekonomist, 2006, no. 7, pp. 23–27. (In Russ.)
Bazhan A.I. [Stabilization fund: theoretical and practical aspects]. Bankovskoe delo = Banking, 2006, no. 12, pp. 18–22. (In Russ.)
Sukharev A.N. [About government savings of the Federal budget]. Finansy = Finance, 2009, no. 11, pp. 18–22. (In Russ.)
Pessoa M., Williams M. Government Cash Management: Relationship between the Treasury and the Central Bank. Washington, IFM, 2012, 26 p. URL: Link
Skrypnik D.V. [A macroeconomic model of the Russian economy]. Ekonomika i matematicheskie metody = Economics and Mathematical Methods, 2016, vol. 52, iss. 3, pp. 92–113. (In Russ.)
Gurvich E., Vakulenko E., Krivenko P. [Cyclic properties of fiscal policy in oil-producing countries]. Voprosy Ekonomiki, 2009, no. 2, pp. 51–70. (In Russ.)
Malkina M.Yu. [On the issue of money supply sufficiency indices and quality of money in economy]. Voprosy upravleniya = Management Issues, 2010, no. 10, pp. 55–61. URL: Link
Yasin E.G. [Oil, Rates and Inflation]. Voprosy Ekonomiki, 2005, no. 9, pp. 4–20. (In Russ.)
Drobyshevskii S., Kozlovskaya A., Trunin P. Vybor denezhno-kreditnoi politiki v strane – eksportere nefti [Monetary and Credit Policy Options for an Oil Exporting Country]. Moscow, Gaidar Institute Publ., 2004, 91 p.
