On the monetary policy: the conditions have changed a lot, but the approaches have changed little

The Monocle weekly magazine (November 27 – December 3, 2023 No.6 (1322), the former Expert magazine) published an article by Mikhail Ershov, Principal Director on Financial Studies, Head of the Financial Analysis Department at the Institute for Energy and Finance, on the topic "On the monetary policy: the conditions have changed a lot, but the approaches have changed little":

"Russia is moving to a new model of development, where the main thing is the internal drivers of the economy, and the economy itself should increasingly focus on the so-called "supply economy" (President Vladimir Putin pointed out this, 06/16/2023). All this is happening in the context of increasing geopolitical tensions.

In this regard, the importance of internal mechanisms and incentives that are necessary for the growth of the Russian economy is further increased. Among them:

• Stronger domestic demand,

• Internal investments.

Demand has started to grow, but supply, i.e. the production of goods and services, is lagging far behind. This is facilitated by high rates, a volatile exchange rate, and the lack of long-term money," Mikhail Ershov notes.