Year of Graduation
Monetary policy during twin economic crisis
School of Statistics, Data Analysis and Demography
Nowadays due to the crisis of 2008 there is a growing interest in the role of monetary policy in stabilizing economy and stimulating economic growth. Although, a number of issues have been analysed and discussed in the field of stimulating macroeconomic policies much remain to be done in the elaboration of anticrisis policies in the developing countries, which have already been exposed to the twin crisis, thus are more vulnerable to economic instabilities. Despite the fact that, there exist a lack of researches devoted to the monetary policy in Russia this work begins with the analysis of the interest rate for the case of other developing countries (Brazil, Mexico and Chile), which have already introduced, for instance, inflation targeting as apposed to Russia (complete switch to the inflation targeting in 2015).Thus, the object of this paper is to identify empirically the monetary policy rules (specifications of Taylor rule) on the basis of quarterly data for Brazil, Mexico and Chile (from 2000 to 2013).The subject of this study is the identification of the relationship between short-term interest rate and other macroeconomic variables: long-term interest rate, Gross domestic product (GDP) gap, inflation and the dynamics of the exchange rate.The main aim of this paper is to specify the monetary rules used by the Central Banks to achieve their targets in inflation or exchange rate and to determine whether there was a change in the implemented rules after the crisis of 2008.The aim is achieved by:1. A comprehensive study of 8 forms of Taylor rule relationship.2. The analysis of two datasets before 2008 and after 2008.3. Intercountry comparison of the monetary policy rules.