Assessment of Monetary Policy Rules in Developing Countries Сonducting Inflation Targeting

Student: Kolodnikov Oleg

Educational Programme: Economics and Statistics (Bachelor)

Final Grade: 8

Year of Graduation: 2016

Inflation targeting policy is aimed to stabilize the price level in the economy. The main target of the policy is to achieve a low and constant inflation. This paper analyzes two developing countries that have passed on this policy more than 10 years ago. We empirically evaluated the monetary policy in Mexico and Brazil, using the Taylor rule and time-series data of the main macroeconomic indicators. Based on the models, we analyzed the characteristics of Mexican and Brazil politics, as well as short-term forecasts were built. Also analyzed the transition to a new monetary policy in Russia. And short-term forecast was made based on the inflation targeting policy trends.

Full text (added May 16, 2016)

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