We develop a model of analysing the optimal combination of macroprudential and monetary policies in a small open commodityexporting economy. Unlike a closed economy, where monetary and macroprudential policies tend to be substitutes, in a small open economy the optimal policy mix depends on the specifics of shocks and economic structure. Monetary and macroprudential policies tend to complement each other when the degree of pass-through of credit spreads into marginal costs and prices are sufficiently high, or when a credit boom is caused by a commodity boom, a fraction of consumers lacks access to financial markets, and the government follows a fiscal policy rule. The two policies are substitutes when the complementarity between domestic and imported production inputs is sufficiently high.
At the beginning of June, the Bank of Russia held in St. Petersburg the international economic research conference Inflation: New Insights for Central Banks. 2 In its format 3 and scope of participants, the conference was the first major international event arranged by the Bank of Russia after it switched to the inflation targeting regime in 2015. We are presenting a brief review of the conference, the main results of the studies presented and their potential policy role for central banks.
In October 2021, the Bank of Russia and the New Economic School (NES) hosted a joint international online workshop titled ‘Main Challenges in Banking: Risks, Liquidity, Pricing, and Digital Currencies’. Five papers were presented. They addressed various issues in banking which are currently of paramount importance to central bankers, market participants, and academics: the connections between systemic risk and the real economy, the digitalisation of finance and information asymmetries, credit spreads and monetary policy, the improvement of information flows and outcomes in credit markets, the introduction of central bank digital currencies, and bank intermediation.
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