Monetary policy: main modes and transmission mechanism

• Main Authors: T. I. Gordiyevich, P. V. Ruzanov
• Format: Article
• Language: English
• Published: Omsk State Technical University, Federal State Budgetary Educational Institution of Higher Education 2019-05-01
• Series: Омский научный вестник: Серия "Общество. История. Современность"
• Subjects: monetary policy; targeting; transmission mechanism; inflation; economic growth
• Online Access: https://www.omgtu.ru/general_information/media_omgtu/journal_of_omsk_research_journal/files/arhiv/2019/%D0%A2.%204,%20%E2%84%96%202%20(%D0%9E%D0%98%D0%A1)/122-130%20%D0%93%D0%BE%D1%80%D0%B4%D0%B8%D0%B5%D0%B2%D0%B8%D1%87%20%D0%A2.%20%D0%98.,%20%D0%A0%D1%83%D0%B7%D0%B0%D0%BD%D0%BE%D0%B2%20%D0%9F.%20%D0%92..pdf

Despite the declining price level, inflation remains one of the important problems in the economy. Monetary policy is designed to ensure a stable level of prices in the economy. The purpose of the article is to study these trends in modern times. The article uses the analytical method. In particular, the main regimes and transmission mechanism of monetary policy are analyzed. The analysis revealed the conditions of monetary, currency, inflation targeting. The main channels of monetary policy transmission mechanism are described: interest rate, credit, currency, inflation expectations. Features of transition to inflation targeting in developed and developing countries are revealed. The description is accompanied by conclusions for the Russian economy. The main directions of monetary policy in recent years are analyzed. The analysis carried out in the article allows to determine the degree of influence of monetary policy on inflation at the present time. Summary. For the economy, methods that greatly reduce inflation are dangerous, as they can lead to a prolonged depression. On the other hand, high price growth creates problems of cost inflation and depreciation of all types of income of economic entities