On the distribution of monetary policy tools  by targets of development

Occupation: Senior Research Fellow of the Institute of Economics RAS
Affiliation:
Institute of Economics RAS
Lomonosov Moscow State University
Address: Russian Federation, Moscow

Oksana Afanasyeva

Occupation: Doctoral student at the Department of Theory and Methodology of State and Municipal Administration, Faculty of Public Administration
Affiliation: Lomonosov Moscow State University
Address: Russian Federation, Moscow

Journal name

Obshchestvo i ekonomika

Edition

Issue 6

Pages

5-28

Abstract

Monetary policy is the main means for stimulating economic growth and achieving other goals of economic development. The objective of the study is to develop the “goals-instruments” principle in relation to monetary policy in order to show the possibility of distributing influence and, for this reason, selecting monetary policy instruments that have different effects on changing development goals, the latter considered to be changes in gross domestic product, inflation and unemployment. The research methodology is represented by Tinbergen's theory of economic policy, structural analysis, and monetary theory. The use of these approaches makes it possible to construct a set of econometric equations that reflect the impact on GDP and its growth, inflation and unemployment; it also allows to conduct an empirical analysis of the relationship between inflation and growth and the dynamics of the M2 money supply components for the Russian economy. The overall result of the study is a picture of the distribution of monetary policy instruments by economic development goals for the Russian economy. It is substantiated that the policy of raising the interest rate was not a strong reason for reducing inflation, but hindered economic growth, creating a potential basis for future inflation. The monetary policy pursued in Russia did not take into account the structure of the money supply and its impact on inflation and growth.

Keywords

«targets-instruments» principle, gross domestic product, inflation, unemployment, monetary policy, multiple regressions, money supply structure, monetary policy instruments

Publication date

24.06.2022

Number of characters

29843

Cite

GOST	Suharev O., Afanasyeva O. On the distribution of monetary policy tools by targets of development // Obshchestvo i ekonomika – 2022. – Issue 6 C. 5-28 [Electronic resource]. URL: https://oie.jes.su/S020736760020579-5-1 (circulation date: 19.04.2024). DOI: 10.31857/S020736760020579-5
MLA	Suharev, Oleg S, Afanasyeva, Oksana "On the distribution of monetary policy tools by targets of development." Obshchestvo i ekonomika 6 (2022):5-28. DOI: 10.31857/S020736760020579-5
APA	Suharev O., Afanasyeva O. (2022). On the distribution of monetary policy tools by targets of development. Obshchestvo i ekonomika (6), pp.5-28 DOI: 10.31857/S020736760020579-5

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 230

Readers community rating: votes 0

1. Afanas'eva O.N. Denezhnaya massa kak instrument denezhno-kreditnoj politiki i stimulirovanie ehkonomicheskogo rosta // Finansy i kredit. 2021. T. 27. № 7. S.1540-1558. URL: https://doi.org/10.24891/fc.27.7.1540

2. Glaz'ev S.Yu. O mekhanizmakh realizatsii tselej natsional'nogo razvitiya Rossii v usloviyakh smeny tekhnologicheskikh mirokhozyajstvennykh ukladov. Nauchnye trudy Vol'nogo ehkonomicheskogo obschestva Rossii. 2021. T. 230. № 4. S. 66-70.

3. Glaz'ev S.Yu. O privedenii makroehkonomicheskoj politiki v sootvetstvie s tselyami razvitiya strany, postavlennymi Prezidentom Rossii. Nauchnye trudy Vol'nogo ehkonomicheskogo obschestva Rossii. 2020. T. 221. № 1. S. 69-78.

4. Sukharev O.S. Makroehkonomicheskaya politika: ehffekt prevysheniya slozhnosti // Vestnik YuRGTU (NPI). Seriya: Sotsial'no-ehkonomicheskie nauki. 2021. 14(1). S. 203-219. URL: https://doi.org/10.17213/2075-2067-2021-1-203-219

5. Sukharev O.S. Raspredelennoe upravlenie kak rasshirenie printsipa «tseli-instrumenty» ehkonomicheskoĭ politiki // Upravlencheskie nauki. 2021. 11(1). S. 6-19. URL: https://doi.org/10.26794/2404-022X-2021-11-1-6-19

6. Tinbergen Ya., Bos Kh. Matematicheskie modeli ehkonomicheskogo rosta // M.: Progress. 1967. 174 s.

7. Acocella N., Di Bartolomeo G. (2006). Tinbergen and Theil meet Nash: Controllability in policy games. Economics Letters Volume 90. Issue 2. February 2006. Pages 213-218. URL: https://doi.org/10.1016/j.econlet.2005.08.002

8. Acocella N., Di Bartolomeo G., Hallett A.H. (2006). Controllability in Policy Games: Policy Neutrality and the Theory of Economic Policy Revisited Computational Economics 28. 91-112 (2006). URL: https://doi.org/10.1007/s10614-006-9035-5

9. De La Peña R. (2021). Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule. Latin American Journal of Central Banking Volume 2. Issue 1. March 2021. 100026. URL: https://doi.org/10.1016/j.latcb.2021.100026

10. Eggertsson T. (1997). The old theory of economic policy and the new institutionalism // World Development Volume 25. Issue 8. August 1997. Pages 1187-1203. URL: https://doi.org/10.1016/S0305-750X (97)00037-5

11. Fenichel E.P., Horan R.D. (2016). Tinbergen and tipping points: Could some thresholds be policy-induced? // Journal of Economic Behavior & Organization Volume 132. Part B. December 2016. Pages 137-152. URL: https://doi.org/10.1016/j.jebo.2016.06.014

12. Figueroa J. G. (2015). Políticas y modelos en Tinbergen y MuthPolicies and models Tinbergen and Muth. Economía Informa Volume 390. January–February 2015. Pages 83-96. URL: https://doi.org/10.1016/S0185-0849 (15)30005-0

13. Hallett A.H., Acocella N., Di Bartolomeo G. (2010). Policy games, policy neutrality and Tinbergen controllability under rational expectations. Journal of Macroeconomics Volume 32. Issue 1. March 2010. Pages 55-67. URL: https://doi.org/10.1016/j.jmacro.2009.07.002

14. Knoester A., Wellink A. H.E.M. (1993). Six Tinbergen lectures on economic policy. Tinbergen Lectures on Economic Policy 1993. Pages 1-8. URL: https://doi.org/10.1016/B978-0-444-81569-9.50005-X

15. Rubio M., Comunale M. (2018). Macroeconomic and financial stability in a monetary union: The case of Lithuania. Economic Systems Volume 42. Issue 1. March 2018. Pages 75-90. URL: https://doi.org/10.1016/j.ecosys.2017.04.002

16. Schader C., Lampkin N., Muller A., Stolze M. (2014). The role of multi-target policy instruments in agri-environmental policy mixes. Journal of Environmental Management Volume 145. 1 December 2014. Pages 180-190. URL: https://doi.org/10.1016/j.jenvman.2014.06.016

17. Thore S., Tarverdyan R. (2022). Chapter Two - Diagnostics for economic and social policy. Measuring Sustainable Development Goals Performance 2022. Pages 23-44. URL: https://doi.org/10.1016/B978-0-323-90268-7.00017-7

18. Tinbergen J. (1995). The Duration of Development // Journal of Evolutionary Economics. 1995. Vol 5 (3). P. 333–339.

19. Tinbergen J. (1956). Economic Policy: Principles and Design Nortn-Holland. 1956. 276 p.