01 Macroeconomics 
and monetary policy

Five years of inflation targeting in Russia: space for improvements

The Bank of Russia had switched to inflation targeting in late 2014. In these five years, inflation had been decreased to the target level and has been maintaining near the target. In parallel, interest rates and inflation expectations have been steadily decreasing.

This session will be dedicated to the experience of inflation targeting in Russia and other countries as well as possible improvements to the approaches currently in use.

Impact of technological advancements 
on monetary policy

New technologies are transforming the financial market’s structure, therefore they may also have an impact on monetary policy transmission mechanisms.

Can we predict the nature of such impact today, and will it require altering the existing approaches to monetary policy?

How the “low-for-long” interest rates affect the emerging markets

Low interest rates as well as large-scale liquidity injections by major central banks contribute to investors’ interest in buying risky assets.

How does it

1) affect interest rates in the emerging markets, and

2) jeopardise the financial stability of emerging economies, and their debt markets in particular.

Zombie companies and related risks for growth and financial stability

In Russia, many inefficient companies do not quit the market. They become zombie firms instead, with no chance of growing or paying off their debts.
To which extent do such companies distort market competition by hampering effective redistribution of labour and capital between businesses and sectors? And can the problems of a few zombie companies eventually grow into a major macroeconomic issue?

Macroprudential toolkit: what should be implemented? How do we do it? And when is the right time?

In the recent years the Bank of Russia has undertaken several macroprudential measures, mainly in retail lending. In 2019, the requirements for financial companies to calculate PTI ratio of borrowers were introduced. Currently, the Bank of Russia is working on improving the implemented macroprudential instruments and studying the feasibility of additional tools.

The discussion will cover the approaches to macroprudential regulation, and the effectiveness of using certain tools in different situations.

Price stability: navigating between low inflation and economic bubbles

We have seen that low interest rates do not always increase the inflation but can spur the emergence of bubbles in financial markets instead. What are the factors at play and how can various policy measures be combined in order to avoid potential negative scenarios?

Macroeconomic policies in the context of regional heterogeneity

Russia alongside with other large countries witnesses a significant cross-regional differences in economic conditions and trends. What are implications of this for macroeconomic and macroprudential policies? How this heterogeneity may be accounted for in the policy decision-making?