MONETARY POLICY AND ECONOMIC GROWTH IN RUSSIA, 2000–2014

Monetary policy of the Bank of Russia had undergone significant changes during 2000–2014. In the period prior to 2008 it was characterized by massive purchasing of foreign currency and raising the flow of money into the economy. Then during 2009 year crisis such policy was changed in order to avoid ruble devaluation and credit crunch. Then it returned to previous policy but in more moderate scale when the crisis was over. Since 2012 a policy of inflation targeting was initiated but the events of the second half of 2014 forced it to make some changes. The overall policy prior to 2014 can be considered as successful but since 2014 external factors and structural problems caused an economic slowdown.