Year of Graduation
The Central bank reaction on the twin crises
The main purpose of this work was to study the occurrence and nature of dual crises in developing countries, as well as finding the most effective instrument of monetary policy in 2008-2010, as well as the crisis in Russia. The study examined the dynamics of key macroeconomic indicators,evaluated various approaches of modeling of a double crisis, considered the policy of the central banks of countries with high and low accumulation of foreign exchange reserves and built an econometric model that demonstrates the most effective instrument of monetary policy. The main results established the insignificance of loan REPO when dealing with banking crisis. The most effective instrument in the fight against the crisis in the banking sector were loans without collateral. The effects of the currency crisis could be mitigated by interventions from the Central Bank. The most interesting result is the absence of negative interaction between banking and currency crises, caused by a rising share of foreign currency in portfolios of Russian commercial banks.