The leadership of the Russian Central Bank is developing a difficult to predict and at the same time easily analyzed management scheme for the money circulation system and the credit resources complex. The above structure is positioned as the largest participant in the financial market, which does not have a clear and understandable strategy in developing mechanisms through which the national economy is managed.
The monetary policy of the Central Bank of the Russian Federation does not imply the satisfaction of all the “aspirations” and wishes of market participants, and the leadership of the main financial institution does not take this parameter into account when creating it.
It should be noted that when deciding on the issue of loans, paramount importance is given to creating an impeccable image for the Central Bank as a world-class management system. The management of the main financial institution is extremely interested in ensuring that foreign investment structures, credit institutions, clubs and other organizations understand that the monetary policy pursued by the Central Bank of the Russian Federation complies with international law. An assessment of the effectiveness of the measures being developed by Russian experts is not a priority for the Central Bank.
The implemented monetary policy of the Central Bank of the Russian Federation, of course, pursues very specific goals, the main of which is to reduce inflation and at the same time increase GDP. At the same time, the task is to create conditions to reduce the number of unemployed citizens and increase incomes of citizens.
It must be emphasized that the monetary policy of the Central Bank of the Russian Federation is formed by the principle of inflation targeting.
According to the target inflation method, the central bank’s priority course in regulating credit and monetary relations is: the degree of monetization of the economy, increase in money supply, interest rates, level of reserve requirements.
It should be emphasized that for a long time the credit policy of the Central Bank of the Russian Federation was based on “vague” and not quite clear principles that did not reflect the real state of affairs on inflation and currency regulation. However, targets were often not true.
The methods used by the monetary policy of the Central Bank did not contribute to the speedy fulfillment of obligations by officials, and the implementation of the planned reforms simply slowed down. In this regard, the situation was aggravated in the implementation of fiscal policy, tariffs were not regulated, inflation increased, and so on.
In fact, the main financial institution does not want to be responsible for the non-containment of inflation, seeing the fault of the executive branch.
It should also be emphasized that when developing a mechanism for managing the monetary system, its authors must necessarily take into account the monetary factor for the development of inflationary processes, which must be comprehensively studied and analyzed. And of course, you should pay attention to the dependence of inflation on the degree of influence of such a category as an increase in the money supply in the economy.