Russian Federation : Selected Issues.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. European Department.

Contributor:

International Monetary Fund. European Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2013/311

IMF country report ; no. 13/311

IMF Staff Country Reports

Language:

English

Subjects (All):

International Monetary Fund--Russia (Federation).

International Monetary Fund.

Inflation (Finance)--Russia (Federation).

Inflation (Finance).

Russia (Federation)--Economic conditions.

Russia (Federation).

Russia (Federation)--Economic policy.

Physical Description:

1 online resource (78 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

This Selected Issues paper analyzes the impact of the adoption of inflation targeting (IT) on exchange rate volatility in Russian Federation. Russia has seen an increase in exchange rate volatility during the past few years compared with the period before the global financial crisis, as the authorities have chosen to allow a higher degree of ruble exchange rate flexibility in preparation for the adoption of IT. The average of the 12-month coefficient of variation of the ruble/dollar exchange rate has also increased from 2.2 percent in December 2005–September 2008 to about 3.7 percent in March 2010–June 2013.

Contents:

Cover; CONTENTS; THE EXCHANGE RATE VS. INTEREST RATE VOLATILITY TRADE-OFF: THE ROLE OF INFLATION TARGETING; A. Introduction; B. Empirical Analysis; FIGURE; 1. Nominal Effective Exchange Rates (log differences), Exchange Rate Regime, and Inflation Targeting; C. Exchange Rate Regime, Inflation Targeting, and NEER Volatility; TABLES; 1. GARCH Estimates of Floating Rate and Inflation Targeting Regime Dummies; D. Exchange Rate Regime, Inflation Targeting, and Exchange Rate Pass-Through; E. Conclusions; 2. Short-Run and Long-Run Exchange Pass-Through Before and After IT; APPENDICES

I. Model SpecificationsII. Impulse-Response Functions NEER to CPI and PPI, Pre- and Post-IT; REFERENCES; CREDIT EXPANSION AND THE MACROPRUDENTIAL POLICY FUNCTION IN RUSSIA; A. Has Rapid Credit Growth Created Systemic Risks?; FIGURES; 1. Credit Growth in Russia and Credit-to-GDP Ratio in Selected Countries; 2. Financial Soundness Indicators in International Comparison; 3. Heatmap for Russian Banks; 4. Russia's Household Debt Burden in International Comparison; 5. Selected Economic Indicators; B. How can Macroprudential Policies Supplement the Microprudential Policy Framework?; TABLE

1. Financial Soundness Indicators, 2007-May 2013APPENDICES; I. The Cubic Trend Methodology; II. Credit Supply Equation; III. Some Relevant Elements of the Institutional Design of Macroprudential Policy; IV. Some Key Distinguishing Dimensions of Real Life Macroprudential Policy Models; V. Selected Systemic Risk Manifestations and MaPP Tools in Other Countries; REFERENCES; USES AND RISKS WITH FX LIQUIDITY ASSISTANCE IN SYSTEMIC CRISIS-IS IT A GOOD IDEA FOR RUSSIA?; A. Introduction; B. Primer: FX Funding Instruments; C. FX Liquidity Shortage and Support since the Global Financial Crisis; FIGURES

1. Global Turbulences in FX Forward Markets and Cross Currency Dollar Funding CostBOXES; 1. Mechanics of Basic Cross-Currency Funding Using FX Forward and Currency Basis Swaps, and their Behavior during a Systemic Crisis; 2. Cost of AE Central Bank Dollar Facility; D. Russia's "FX Liquidity Support" during the Crisis: Benefits and Consequences; 3. External and Monetary Conditions in Russia during the 2008-09 Crisis; 4. Russia's Interest Rate Policy: 2008-10; 5. Cross-Currency Arbitrage Opportunities in Russia and Capital Flows: 2008-09

2. Best Practice for Liquidity Support by Central Banks in a Systemic CrisisE. Key Considerations for Establishing Effective FX Liquidity Safeguard in Russia; 6. Russia Banks, Foreign Financing and Credit Growth; 7. Russia's External Debt: 2005-13; TABLES; 1. Details of Dollar Swap Arrangement with FRB and Corresponding Domestic Dollar Provision Modality, by Central Banks, October 2008 through 2010; 2. Emergency FX Lquidity Support by Types of Instruments in Emerging Markets

September 2008-June 2009; REFERENCES

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed January 08, 2014).

ISBN:

9781484342176

1484342178

9781484316276

1484316274

9781484358856

1484358856