Measuring Changes in Russian Monetary Policy: An Indexed-Based Approach
Russia’s transition to a market economy was accompanied by several monetary regime changes of the Bank of Russia (BoR) and even different policy goals. In this context we should mention the transformation of the exchange rate regime from managed floating to free floating (since November 2014) and several changes of the monetary regimes (exchange rate targeting, monetary targeting, and inflation targeting). As a measurement of changes in Russian monetary policy in 2008–2018 we develop a Monetary policy index (MPI). We focus on key monetary policy instruments: interest rates (key rate, liquidity standing facilities and standing deposit facilities rates), amount of REPO operations, BoR foreign exchange operations and required reserve ratio on credit institutions` liabilities. Our investigation provides a practical contribution to the discussion of Russian monetary regimes by creating a new MPI adopted to the conditions in Russia and enlarges the discussion of appropriate monetary policy regimes in transition and emerging countries.