Global regulators are facing a dilemma: the objectives of monetary policy contradict the objectives of supporting financial stability. Useful conclusions for Bank of Russia policy can be drawn from this situation.
The global economy is at a turning point, and many aspects of the current global transformation are more crucial for the Russian economy than they are for other countries.
Global lenders are focused on financing development projects in good times. In times of crisis, they switch to stabilisation loans and become ‘firefighters’. This is the role being increasingly played by development banks, data from 11 countries of the Eurasian region show.
No one will argue that the financial sector affects the real one, but the number of answers to the question of how exactly it does so is almost the same as the number of economists. A problem arises in finding indicators that characterise this influence quite fully.
Negative news in the media covering the overall economic situation may act as a meaningful predictor of the dynamics of Russians’ inflation expectations and their current inflation perceptions. These are most driven by news about the ruble exchange rate and economic crisis.
The reliance of Russian economic sectors on imports is relatively low and does not exceed the median for other countries, a study has found. However, 60% of Russia’s imports come from the countries that have announced sanctions against Russia.
Gravity exists not only in physics, but also in economics, and just like in physics, its laws are objective. It is far more important for small and medium-sized economies to maintain and develop economic ties with the largest economies than vice versa.
Ksenia Yudaeva, First Deputy Governor of the Bank of Russia, on inflation, stagflation and when sustainability is more important than efficiency.
As one of the three winners of the 2022 Nobel Prize in economics, Ben Bernanke was awarded it for his research into the causes of the Great Depression. He learned and applied its lessons as chair of the US Federal Reserve when it had to combat the global financial crisis.
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