Some Aspects of Monetary Policy Optimization

Dmitry N. Shults – Director of Macroeconomic Research, Infrastructure Economics Centre, PhD in Economics (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Zarina Е. Tsokolaeva – Leading Expert in Macroeconomic Research, Infrastructure Economics Centre (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The article is devoted to possible directions of improving monetary policy in Russia. First, various variants of the targeting object are considered. Model studies on the optimization of monetary policy parameters indicate the need to target the most inflexible components of inflation, which make the greatest contribution to the loss of market efficiency. The technical aspects of the optimization of monetary policy based on the apparatus of general equilibrium models are considered. Finally, the issue of improving monetary policy through the transition to hybrid inflation targeting is considered.

Key words: monetary policy, monetary policy optimization, inflation targeting, hybrid inflation targeting.

JEL-codes: E52, E58.