The journal "Voprosy Ekonomiki" published an article by experts of the Gaidar Institute
The journal "Voprosy Ekonomiki" published an article “Reasons for accelerating inflation in the Russian Economy” prepared by experts of the Gaidar Institute.
Authors of the article concluded that increased inflation in 2020—2024 is associated with acceleration of money supply growth rates. Transactions involving the unsterilized resources of the National Welfare Fund made the major contribution to the growth of the monetary base. This was followed by an acceleration of credit growth supported by preferential programs and a reduction in the mandatory reserve rate, which was reflected in an increase in the credit multiplier. Accelerated growth in the money supply resulted in an increase in the growth rate of consumer prices. The current phase of the economic cycle along with the labor shortage intensifies inflationary pressure. It could have been even higher if not for the increase in demand for real cash balances and high growth rates of real GDP in 2023-2024. Along with tight monetary policy, additional measures to reduce inflation could be as follows: slowing down the indexation of regulated prices and excise rates; limiting growth rates of consumer and car loan portfolios of commercial banks; increasing their mandatory reserve requirements.
Tuesday, 14.01.2025