Evgeny Goryunov: "Acceleration of money circulation is not a factor of inflation"
Evgeny Goryunov, Head of the Monetary Policy Department of the Gaidar Institute, commented for RBC on the situation with the acceleration of money circulation in context of high inflation and high interest rates. According to the expert, this is not a factor accelerating inflation and does not form an "inflationary overhang".
"Acceleration of money circulation in the context of high inflation and high interest rates is more than natural. In such conditions money becomes like a hot potato — as soon as it appears it is better to spend it quickly or deposit it at interest, otherwise it will depreciate. In my opinion, this cannot be considered as a factor of inflation. I don’t see any inflationary overhang effect here either. The velocity of money circulation depends on inflation, but there is no reverse effect," said Evgeny Goryunov.
Monday, 28.04.2025