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
Volume7
Issue numberSpecial Issue
DOIs
StatePublished - 10 Dec 2018

    Research areas

  • money-demand function; investment climate; inflation targeting; cointegration, SCOPUS, Inflation targeting, Money-demand function, Socio-economic climate, Cointegration analysis

    Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)

ID: 9434958