Stability of Money Demand in the Russian Economy after the Global Financial Crisis of 2008-2009

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Existence of a favorable socioeconomic climate is now considered as a key factor of the long-term economic growth of a country. This is specifically true for the emerging economies in the modern global economic environment. For the Russian economy which has been facing economic sanctions from the part of Western countries, creation and maintaining of such climate is a crucial issue of survival. From this perspective, the efforts applied by the Bank of Russia and the Russian government were aimed at stabilization of the economy and creation of an attractive economic environment in the country. This paper studies the conditions under which this policy was carried out in 2011-2017. This study specifically focuses on one of the key aspects of success of such policy - stability of the money-demand function (MDF) in the Russian economy. The presence of such stability is studied using the cointegration analysis, and the type of relationship between national income and money demand is also identified. The findings of this research speak in favor of existence of a stable MDF in the Russian economy of that time. Thus, based on the Russian case, the paper's contribution is empirical demonstration of the importance of MDF stability for success of monetary policy which is in line with the extant literature.
Original languageEnglish
Pages (from-to)946-952
Number of pages7
JournalJournal of Reviews on Global Economics
Issue number7
DOIs
StatePublished - 10 Dec 2018

Keywords

  • money-demand function; investment climate; inflation targeting; cointegration
  • SCOPUS

Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

@article{fdfd89b4be9540aeb8a1a3c3e93c77bc,
title = "Stability of Money Demand in the Russian Economy after the Global Financial Crisis of 2008-2009",
abstract = "Existence of a favorable socioeconomic climate is now considered as a key factor of the long-term economic growth of a country. This is specifically true for the emerging economies in the modern global economic environment. For the Russian economy which has been facing economic sanctions from the part of Western countries, creation and maintaining of such climate is a crucial issue of survival. From this perspective, the efforts applied by the Bank of Russia and the Russian government were aimed at stabilization of the economy and creation of an attractive economic environment in the country. This paper studies the conditions under which this policy was carried out in 2011-2017. This study specifically focuses on one of the key aspects of success of such policy - stability of the money-demand function (MDF) in the Russian economy. The presence of such stability is studied using the cointegration analysis, and the type of relationship between national income and money demand is also identified. The findings of this research speak in favor of existence of a stable MDF in the Russian economy of that time. Thus, based on the Russian case, the paper's contribution is empirical demonstration of the importance of MDF stability for success of monetary policy which is in line with the extant literature.",
keywords = "money-demand function; investment climate; inflation targeting; cointegration, SCOPUS, SCOPUS",
author = "Gilenko, {Evgenii V.}",
note = "Gilenko, E. V. Stability of money demand in the Russian Economy after the global financial crisis of 2008-2009 // Journal of Reviews on Global Economics. – 2018. – Issue 7 (Special Issue). – P. 946-952.",
year = "2018",
month = "12",
day = "10",
doi = "10.6000/1929-7092.2018.07.92",
language = "English",
pages = "946--952",
journal = "Journal of Reviews on Global Economics",
issn = "1929-7092",
publisher = "Lifescience Global",
number = "7",

}

Stability of Money Demand in the Russian Economy after the Global Financial Crisis of 2008-2009. / Gilenko, Evgenii V.

In: Journal of Reviews on Global Economics, No. 7, 10.12.2018, p. 946-952.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Stability of Money Demand in the Russian Economy after the Global Financial Crisis of 2008-2009

AU - Gilenko, Evgenii V.

N1 - Gilenko, E. V. Stability of money demand in the Russian Economy after the global financial crisis of 2008-2009 // Journal of Reviews on Global Economics. – 2018. – Issue 7 (Special Issue). – P. 946-952.

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N2 - Existence of a favorable socioeconomic climate is now considered as a key factor of the long-term economic growth of a country. This is specifically true for the emerging economies in the modern global economic environment. For the Russian economy which has been facing economic sanctions from the part of Western countries, creation and maintaining of such climate is a crucial issue of survival. From this perspective, the efforts applied by the Bank of Russia and the Russian government were aimed at stabilization of the economy and creation of an attractive economic environment in the country. This paper studies the conditions under which this policy was carried out in 2011-2017. This study specifically focuses on one of the key aspects of success of such policy - stability of the money-demand function (MDF) in the Russian economy. The presence of such stability is studied using the cointegration analysis, and the type of relationship between national income and money demand is also identified. The findings of this research speak in favor of existence of a stable MDF in the Russian economy of that time. Thus, based on the Russian case, the paper's contribution is empirical demonstration of the importance of MDF stability for success of monetary policy which is in line with the extant literature.

AB - Existence of a favorable socioeconomic climate is now considered as a key factor of the long-term economic growth of a country. This is specifically true for the emerging economies in the modern global economic environment. For the Russian economy which has been facing economic sanctions from the part of Western countries, creation and maintaining of such climate is a crucial issue of survival. From this perspective, the efforts applied by the Bank of Russia and the Russian government were aimed at stabilization of the economy and creation of an attractive economic environment in the country. This paper studies the conditions under which this policy was carried out in 2011-2017. This study specifically focuses on one of the key aspects of success of such policy - stability of the money-demand function (MDF) in the Russian economy. The presence of such stability is studied using the cointegration analysis, and the type of relationship between national income and money demand is also identified. The findings of this research speak in favor of existence of a stable MDF in the Russian economy of that time. Thus, based on the Russian case, the paper's contribution is empirical demonstration of the importance of MDF stability for success of monetary policy which is in line with the extant literature.

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