Problems of Monetary Policy Implementation by the Bank of Russia in Shock Periods of Economic Development

To fulfill its main function of protecting and ensuring the stability of the ruble, the Bank of Russia actively uses an inflation targeting policy, operating in conditions of permanent crises (macroeconomic, political, institutional, monetary). Such an approach makes it relevant to study the degree of influence of pro-inflationary factors on the actual inflation rate, as well as to analyze the experience of monetary policy as an alternative to regulating the key rate. The purpose of the study is to assess the effectiveness of using the key rate as an inflation targeting tool. The scientific novelty of the research consists in the identification and the analysis of factors influencing the formation of inflation targeting goals. During the study, the methods of generalization, grouping, statistical and comparative analysis were used. As a result of the study, the impact of pro-inflationary factors on the Russian economy as well as on the level of inflation targets in Russia and the world was assessed; the actual problems of inflation targeting using the key rate were formulated; the contradiction of social and monetary policy in the conditions of economic and political shocks was revealed; and alternative mechanisms of inflation regulation were proposed. Based on the results of the study, the conclusions were made that to effectively achieve the target inflation rate, it is necessary to increase the level of confidence in the Bank of Russia and the predictability of monetary policy on the basis of increased transparency of the Bank’s decisions on the key rate. It is shown that the open policy of inflation targeting, even at a high level of the key rate, may increase the adaptability of the economy to the short-term shocks, but at the same time, a coordinated macroeconomic policy implemented by the Bank of Russia jointly with the Government of the Russian Federation is also necessary. Based on the identified urgent problems of reducing inflation, measures to minimize them are proposed.