Stimulative monetary policy of Russia and its instruments in the context of the sanctions war

Abstract

Aim. To develop guidelines and instruments of the stimulating monetary policy of the Russian Federation (RF), contributing in the conditions of the sanctions imposed to increase the rate of economic growth and its efficiency.Tasks. Analysis of the state of the Russian economy, the main directions of its further de­velopment and regulation mechanisms; study of the financial potential of the Russian econ­omy (savings and investments) in conditions of closing access to financial markets and to in­ternational payment and settlement systems of developed countries; study of the ongoing monetary policy of Russia, its main components — monetary and fiscal policy, their impact on economic growth; analysis of modern monetary theory, existing views of Russian and for­eign economistsMethods. The authors applied the method of analysis in the process of studying the practice of monetary and fiscal regulation in Russia and abroad, carried out economic analysis. The ar­ticle reflects the research data of Russian and foreign specialists. A systematic approach, which provides for the interdependence of monetary, fiscal policy and macroeconomic regulation of the economy, investment and innovation development, was used.Results. The need to combine the ongoing restraining anti-inflationary monetary policy with a soft budget policy, providing incentives for modernization of enterprises, domestic demand and supply at the expense of targeted budget financing within the adopted state programs of socio-economic, structural and innovative development with reasonable limits of budget deficit and public debt has been established.Conclusions. In a stagflationary environment, it seems appropriate to pursue a strict anti- inflationary monetary policy of the Bank of Russia, restraining credit issuance and stimulat­ing the growth of savings. Closed access of RF residents to financial markets of developed countries with excessive monetary resources, limited opportunities for growth of domestic savings and savings, insufficient inflow of foreign investments due to high risks of Russian residents to foreign markets increases the importance of targeted budget financing in the context of state programs to expand and modernize production, structural reforms and in­novation development. To justify the limits of the deficit of state and municipal budgets and debts, it is necessary to apply the indicators of fiscal gaps. As the key rate of the Bank of Russia decreases, the financial market stabilizes, and the targets of targeted programs are met, budget financing is replaced by private investment, bank and commercial lending.