Home  Journals  Finance and Credit  6(858) - 2025 June

The relationship between monetary policy and macroeconomic stability in Russia

Received: 9 January 2025

Accepted: 20 January 2025

Available online: 26 June 2025

Subject Heading: MONETARY ACCOMMODATION

JEL Classification: Е42, Е50, Е52, Е58

Pages: 208-224

https://doi.org/10.24891/ndyweh

Subject. This article discusses the issues of monetary policy and macroeconomic stability in Russia.
Objectives. The article aims to find the relationship between monetary policy and macroeconomic stability in Russia.
Methods. For the study, I used analysis and synthesis, special economic and mathematical methods, in particular, and correlation and regression analysis.
Results. The article reads of incorrect application of the key rate by the Bank of Russia to increase the real cost of borrowing for the inflation targeting purpose, and the risks of accelerating inflation if monetary authorities adjust the volatility of the gross domestic product by reducing the exchange rate.
Conclusions and Relevance. The article shows that the Bank of Russia's measures aimed at ensuring macroeconomic stability, while pursuing the goals to maintain sustainable economic growth and control inflation, generally have a negative impact on the business environment, provoking a reduction in investment activity. The study results can be of interest to a wide range of financial market entities and society as a whole. The results obtained will contribute to the formation and implementation of scientifically based business decisions, as well as correctly predict changes in economic processes.

Keywords: exchange rate, monetary policy, key rate, macroeconomic stability, inflation targeting

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