International Transmission of Conventional and Unconventional Monetary Policy and Financial Stress Shocks from the Euro Area to Russia

Journal of Central Banking Theory and Practice. 2022. Vol. 11. No. 1. P. 227–247.

Dajčman S., Kavkler A., Merzlyakov S., Pekarski S. E., Romih D.

This paper studies the international transmission of the
euro area´s monetary policy and financial stress to Russia. The results
show that financial stress in the euro area damages Russian
economic activity and stock prices, but not its trade balance. The
contractionary euro area monetary policy shock decreases Russian
GDP, leads to real appreciation of the euro against the Russian rouble,
damages Russian stock prices, but does not significantly affect
the trade balance between countries. We also found that the Central
Bank of the Russian Federation adjusts to monetary policy shocks in
the euro area.

Keywords: монетарная политика, Россия, Russia, monetary policy, unconventional monetary policy, нетрадиционная монетарная политика, financial stress, international transmission

Publication based on the results of: Macroeconomic policy: from stagnation to sustainable economic growth (2022)