Goals, methods and instruments of monetary policy. Monetary policy methods Monetary policy methods

Money-credit policy- this is a set of measures taken by the government in the field of monetary circulation and credit relations to give macroeconomic processes the direction of development necessary for the state.

The main purpose of this policy- ensuring the equilibrium and sustainable development of the economy. Specific goals:

1) strengthening the monetary system

2) impact on the investment process

3) impact on consumer demand and

4) on pricing.

The main task- overcoming the banking crisis, restoring confidence in the banking system and stimulating organized savings of the population.

There are 2 types of monetary policy:

1. Restrictive monetary policy (credit restriction)- aimed at tightening conditions and limiting the volume of credit transactions in commercial banks, at increasing interest rates. Such a policy may be accompanied by tax increases, government spending cuts and other measures to curb inflation.

2. Expansionary monetary policy(credit expansion) - from accompanied by an expansion in lending, weakening control over the growth of the money supply, reducing tax rates, lowering interest rates (in general, they stimulate demand in the economy).

The modern monetary policy of most countries is based on the theory of monetarism, which are based on the ideas Targeting, it involves not only planning, determining the quantitative parameters of the money supply, but also the transformation of these actions into a public process. The most important function of the state is the impact on monetary relations. It is implemented through monetary policy. The main role in conducting monetary policy belongs to the Central Bank.

Monetary policy objectives:

1) restructuring of the banking system;

2) improving the procedure for monitoring banks' compliance with mandatory ratios;

3) smoothing fluctuations in the exchange rate of the ruble against foreign currencies;

4) replenishment of the state's foreign exchange reserves and a decrease in the outflow of capital abroad;

5) strengthening customs control.

According to Article 35 of the Federal Law “On the Central Bank of the Russian Federation”, the main The instruments and methods of the monetary policy of the Bank of Russia are:

1) interest rates on Bank of Russia operations. The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate. The Bank of Russia uses interest rate policy to influence market interest rates. The refinancing rate affects the cost of a loan provided by credit institutions to their clients: the higher the percentage, the more expensive the loan for the client. By raising the refinancing rate, the Central Bank reduces the ability of banks and their clients to receive loans, which reduces the money supply and increases the level of market interest.

2) norms of required reserves deposited with the Bank of Russia (reserve requirements). The amount of required reserves as a percentage of CI liabilities (required reserve ratio), as well as the procedure for depositing required reserves with the Bank of Russia, are established by the Board of Directors. Required reserve ratios cannot exceed 20% of a credit institution's liabilities and may be differentiated for different credit institutions. Required reserve ratios cannot be changed by more than five points at a time;

3) open market operations- purchase and sale by the Bank of Russia of treasury bills, government bonds, other government securities, bonds of the Bank of Russia, as well as short-term transactions with these securities with a reverse transaction later. These operations regulate the liquidity and credit investments of banks through the placement of public debt;

4) refinancing of credit institutions- lending by the Bank of Russia to credit institutions. The forms, procedure and conditions for refinancing are established by the Bank of Russia;

5) foreign exchange interventions- purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money;

6) setting benchmarks for the growth of the money supply. The Bank of Russia may set growth targets for one or more indicators of the money supply, based on the main directions of the unified state monetary policy;

7) direct quantitative restrictions- setting limits on the refinancing of credit institutions and the performance by credit institutions of certain banking operations. The Bank of Russia has the right to apply direct quantitative restrictions, equally applicable to all credit institutions, in exceptional cases for the purpose of pursuing a unified state monetary policy only after consultations with the Government of the Russian Federation;

8) issue of bonds on its own behalf. The Central Bank may, on its own behalf, issue bonds placed and circulated among credit institutions. The limit on the total nominal value of Bank of Russia bonds of all issues not redeemed as of the date the Board of Directors took a decision to approve the decision to issue (additional issue) bonds of the Bank of Russia is set as the difference between the maximum possible amount of required reserves of credit institutions and the amount of required reserves of CBs determined by based on the current required reserve ratio.

The Bank of Russia annually, no later than August 26, submits to the State Duma a draft of the main directions of the unified state. monetary policy for the coming year and no later than December 1 - the main directions of the unified state. monetary policy for the coming year.

The mechanism of monetary regulation largely depends on the forms of organization of banking activities in the country and the powers of the Central Bank. The state can use both direct (administrative) and indirect (economic) methods of influencing the activities of banks.

Go to Administrative Methods include direct restrictions (limits) or prohibitions established by the Central Bank in relation to various parameters of the activities of banks in various areas. When using administrative methods of influence, the following types of restrictions are most widely used: quotas for certain types of operations, the introduction of limits on the issuance of various categories of loans and the attraction of credit resources, restrictions on the opening of branches and branches, the determination of interest rates, as well as the licensing of certain areas of banking (for example, , licensing operations with currency and precious metals).

To ek. regulation methods total cash turnover includes activities, the use of which has mainly an indirect impact on the decisions made by business entities and does not imply the establishment of direct prohibitions or limits. There are three groups of economic methods for managing the money supply: tax, regulatory and corrective. Basically, only normative and corrective methods are used.

TO normative methods include all types of deductions and coefficients that are mandatory and established in the form of a standard. The main regulatory instrument is the change in the required reserves ratio, which largely determines the size of the money multiplier. Depending on the state of the economic situation, two main types of monetary policy are distinguished, each of which is characterized by its own set of tools and a certain combination of economic and administrative methods of regulation.

Corrective action is carried out by carrying out credit operations of the Central Bank (when the Central Bank acts as a lender of last resort) and operations with securities, which can be carried out at the discretion of the Central Bank in the required scale and with the required frequency, due to which the effect is achieved more quickly. This form of influence is distinguished by flexibility and efficiency, the ability to provide a stimulating or restrictive effect on the issue of credit and deposits, depending on the situation.

Moreover, m Methods of monetary policy are divided into 2 groups :

1. General Methods: interest or accounting policy; open market operations; reserve requirement policy.

2. selective(selective): direct limitation of the size of bank loans, for individual banks (loan ceilings); regulation of the conditions for issuing specific types of credit (setting the size of the credit margin).

Money-credit policy is a set of interrelated measures taken by the monetary authorities in the monetary sphere in order to regulate the reproduction process. Monetary policy, together with budgetary policy, forms the basis of modern state regulation of the economy.

The purpose of monetary policy is to regulate the economy by influencing the state of money circulation and credit.

There are two types of monetary policy: expansionary and restrictive. Measures carried out within the framework of the restriction type contain direct prohibitions and restrictions aimed at reducing the volume and tightening the conditions for conducting transactions in the money market. The expansionary type of monetary policy does not contain direct prohibitions and restrictions and is aimed at expanding the volume of operations in the money market and creating favorable conditions for their conduct.

There are two types of monetary policy: total(general) and selective. The activities carried out within the framework of the total monetary policy apply to all institutions of the banking sector. Selective monetary policy is directed either at certain banking institutions or at certain types of banking operations.

The implementation of monetary policy and the achievement of its goals are carried out with the help of various tools. Monetary policy instruments are a set of specific measures and methods of state regulation of the economy aimed at changing the parameters of the money supply and the volume of credit investments in the economy.

Monetary policy instruments vary:

by objects of influence (supply of money and demand for money);
form (direct and indirect);
the nature of the parameters (quantitative and qualitative);
duration of impact (short-term and long-term).

All these tools are used in a single system.

Objects of influence. Depending on the specific goals, monetary policy is aimed either at stimulating credit emission (credit expansion) or at limiting it (credit restriction). By means of carrying out credit expansion, the goals of raising production and revitalizing the conjuncture are pursued; credit restriction is an attempt to prevent the excessive glut of money in the economy, which is observed during periods of economic boom.

By shape administrative(straight) and economic(indirect). Administrative instruments are those in the form of directives, prescriptions, instructions coming from the central bank and aimed at limiting the scope of the credit institution. Under the instruments of an economic nature, we mean the ways in which the central bank influences the monetary sphere through the formation of certain conditions in the money market and the capital market. Economic instruments are more flexible than administrative ones, but the results of their application are not always adequate to the intended purpose. Nevertheless, at present, central banks in most cases use indirect regulatory instruments.

By the nature of the parameters, established in the process of the influence of the Central Bank on the monetary sphere, monetary policy instruments are divided into quantitative and qualitative.

Through the use of quantitative methods, there is an impact on the state of the credit capabilities of banks, and, consequently, on money circulation as a whole.

Qualitative instruments are a variant of direct regulation of the qualitative parameter of the market, namely, the cost of bank loans.

By exposure time monetary policy instruments are divided into long-term and short-term in accordance with the objectives of the implementation of the immediate and long-term goals of monetary policy. Long-term (final) goals of monetary policy mean those tasks of the Central Bank, the implementation of which can be carried out from 1 year to several decades. Short-term instruments include instruments of influence, with the help of which intermediate goals of monetary policy are achieved.

The choice and combination of monetary policy instruments depends primarily on the tasks that the Central Bank solves at a particular stage of economic development.

At the initial stages of the transition to market relations, the most effective are direct methods of intervention of the Central Bank in the monetary sphere: administrative regulation of deposit and lending rates of commercial banks, setting limits on lending by the bank to its customers, changing the level of minimum reserves. With the development of market relations, there is a transition to indirect methods of regulation, and above all to operations on the open market and changes in the level of interest rates.

The main economic (indirect) monetary policy instruments of the Central Bank are the following:

regulation of the official discount rate;
open market operations;
establishment of minimum reserve requirements.

In almost all countries of the world, commercial banks resort to loans from central banks, which are provided at a certain percentage. The discount rate is the official rate applied by central banks in transactions with commercial banks to discount short-term government bonds to rediscount commercial bills and other types of securities that meet the requirements of the central bank. In other words, the official discount rate is a fee charged by the Central Bank when purchasing securities from commercial banks before they become due.

The official discount rate is a benchmark for market lending rates. By setting the official discount rate, the Central Bank determines the cost of attracting credit resources by commercial banks. The higher the level of the official discount rate, the higher the cost of central bank refinancing loans. The policy of changing the discount rate is a variant of regulating the qualitative parameter of the money market - the cost of bank loans.

The change in the discount rate refers to the indirect instruments of monetary regulation. Its widespread use is justified by its ease of use. If the Central Bank aims to reduce the lending capacity of commercial banks, then it raises the discount rate, thereby increasing the cost of refinancing loans. If the goal of the Central Bank is to expand access to loans from commercial banks, then it reduces the level of the discount rate.

Since virtually all banks rely on central bank lending to some extent, the impact of central bank rates extends throughout the economy. However, the Central Bank is not always able to achieve the intended goal. For example, an increase in the discount rate will not be effective if the money market currently tends to reduce the cost of loans as a result of their increased supply, since in this case commercial banks will prefer to use cheaper loans from the interbank market than expensive central bank loans.

The mechanism for granting loans by the Central Bank to commercial banks is defined by the term "discounting". The terms and conditions for issuing loans to commercial banks are characterized by a discount window policy.

Thus, a change in the discount rate changes the amount of borrowed funds of banks, affects the money supply, causing a multiplier effect.

Meanwhile, if the Central Bank predicts a change in the money supply in a certain amount, then it is necessary to change the amount of borrowed resources of banks. But at the same time, it remains unknown how much the discount rate should be changed for this. Such dependence between discount (accounting) policy and resources makes this instrument of monetary policy the least significant.

Open market operations are operations of the Central Bank for the purchase and sale of securities (mainly obligations of the Treasury and state corporations, industrial companies and banks, commercial bills discounted by the central bank).

The mechanism of open market operations is simple, which makes it attractive to use. Thus, in the case of the purchase of securities by the Central Bank, the volume of bank reserves increases by this amount. Moreover, the money supply will increase by several times relative to the amount purchased by the central bank. An increase in the money supply will, in turn, lead to an increase in economic activity. Accordingly, the sale of securities by the Central Bank to a commercial bank reduces the bank's own reserves, which will lead to a reduction in the money supply and will affect the cost of the loan. This contraction in the money supply can lead to a downturn in business activity over time.

Central bank operations in the open market involve the use of various technical procedures. They differ depending on:

terms of transactions (direct purchase and sale or purchase and sale for a period with an obligation to repurchase at a predetermined rate);
objects of transactions (transactions with state or private securities); urgency of transactions (short-term - up to 3 months and long-term - from 1 year or more); areas of operations (only the banking sector or in conjunction with the non-banking sector of the securities market);
method of setting interest rates (by the Central Bank or the market);
source of initiative in carrying out the operation (the Central Bank or money market participants).

Differences in the technical procedures for conducting operations on the open market are due to a number of factors:

the specifics of the credit and banking system, which implies a different composition of market participants;
features of national legislation.

Central banks use two main types of open market operations: direct and reverse.

Direct Operations is the operation of a central bank to buy or sell securities on the open market without any commitment to the transaction. If the central bank buys securities, it is not required to buy them back after a certain period of time. If the central bank sells securities, the buyer is under no obligation to sell them to the central bank. Direct operations are carried out on the basis of:

cash;
regular delivery.

Operations on cash or cash basis imply full settlement within the day of completion of the transaction. Regular delivery transactions involve full settlement and delivery of the securities to the buyer on the next business day.

The purchase of securities by the central bank on the open market leads to an increase in banks' reserves, which gives them the opportunity to expand lending operations. The sale of securities by the central bank on the open market contributes to the reduction of banks' reserves and, accordingly, reduces their lending capacity.

General operations on the open market ("REPO" operations) - transactions for the purchase and sale of securities by the central bank with the obligation to resell - redemption at a predetermined rate.

Under a repurchase agreement, the central bank buys securities from a dealer, and the dealer agrees to buy back these securities at a specified time and price. In essence, such a transaction is a loan from the central bank; the interest rate is set by auction among dealers. A purchase by a central bank under such an agreement is called a repurchase transaction.

A complement to a REPO transaction is a reverse, or pair, purchase and sale transaction. On such a transaction, the central bank sells the securities to the dealer and also agrees to buy them back at a predetermined price and within a specified period. This is a loan received by the central bank from the dealer. Repos and reverse repos are short-term contracts with a term of less than 15 - th. The duration of transactions allows the central bank to temporarily change the reserves of bank institutions.

Reverse Operations are characterized by a softer impact on the money market and therefore are a flexible method of regulation. Currently, these transactions account for the largest share of the total volume of central bank operations in the..open market.

It is necessary to distinguish between active and defensive operations in the open market. The central bank uses active open market operations to change the level of reserves of credit institutions. Direct purchases and sales of government securities are more or less permanent. Protective operations in the open market are adjustments to maintain the current level of total reserves of banking institutions. From time to time, predictable and unforeseen situations arise in the economic system that temporarily change the total reserves and (or) money supply. Short-term defensive operations are needed to maintain stability in the economy and the expected level of reserves. This is what REPO transactions and reverse REPO transactions are designed for, due to their short durability. Repos provide temporary reserves, while reverse repos remove temporary excess reserves.

With insignificant volumes of operations on the open market, they have a qualitative rather than quantitative impact on the liquidity of the banking system and snow circulation. However, as this regulatory instrument develops and improves, its impact on the quantitative parameters of the money market becomes more tangible.

An important feature of the central bank's operations in the open market is a quick response to short-term market development trends, which allows it to have a stabilizing effect on the state of money circulation and the economy as a whole.

The third instrument of monetary policy is establishment of minimum reserve requirements. Changing the norms of reserve requirements is one of the oldest methods of regulation related to indirect methods. For the first time, bank reserve norms were introduced in the USA in 1863 - half a century before the creation of the Federal Reserve System.

Minimum reserves- this is the mandatory rate of deposits of commercial banks in the Central Bank, established by law and defined as a percentage of the total amount of deposits of commercial banks.

The regulation of minimum reserve requirements has a dual meaning: on the one hand, it guarantees a minimum level of liquidity for commercial banks, on the other hand, it is used as an important instrument of the central bank's monetary policy. As a result of changes in the norms of reserve requirements, the money supply and the volume of lending change.

According to the money multiplier model (M = m MB), a change in the required reserves changes the money multiplier, but other things being equal, it does not affect the monetary base.

Reducing the reserve coverage rate increases the value of the multiplier, while increasing this rate decreases it accordingly.

A decrease in the required reserve coverage ratio increases the value of the multiplier, a decrease in required reserves increases the money supply. An increase in the reserve coverage ratio reduces the value of the multiplier, an increase in required reserves reduces the money supply.

The multiplier effect affects the total volume of lending. As a result of the decrease in reserve requirements, there is an increase in the credit multiplier and, consequently, in the total volume of bank lending. An increase in reserve requirements entails a decrease in the overall credit multiplier and reduces the total amount of bank lending.

The methods of establishing the base of reserve requirements in different countries are not the same not only quantitatively, but also qualitatively. As a rule, they are established in relation to the bank's liabilities or to the volume of increase in liabilities for a certain period, or to individual liability items. In many countries, the norms of required reserves are differentiated by types of deposits: time deposits and demand deposits, which is due to the distinction in terms of the degree of "monetary value" of various components of the money supply. The distinction according to the degree of "money" is necessary for differentiated management of the dynamics of various types of deposits. As a rule, demand deposits are subject to higher reserve requirements than those for term and savings deposits.

The mechanism for applying reserve requirements provides for the placement of commercial banks' deposits with the Central Bank at a level set as the average for a certain period. Since the value of total contributions is constantly changing, only at the end of a certain period can the average value of contributions be accurately determined. As a rule, the settlement period for fulfilling reserve requirements is 1 month, although exceptions are possible.

The market economy is a mechanism that is sufficiently self-regulating. But in most modern states there are power institutions that are periodically involved in the management of economic processes due to the fact that this must be done in order to maintain the stability of the national market. These institutions carry out monetary policy. What is the specificity of this type of activity of state structures? What methods do they use for this?

What is monetary policy?

Under the subject of monetary policy, which is sometimes also referred to as monetary, in the general case, it is customary to understand the state. Thus, this type of activity is the work of the authorities, through which the mechanism for the circulation of funds in the national economy is managed. The purpose of the state's monetary policy is to contain prices, provide employment for citizens and stimulate the growth of the economy as a whole.

The main institution that carries out these activities in the Russian Federation is the Central Bank of Russia. In a narrow sense, monetary policy can be understood as the activity of any economic entity. For example - an enterprise or municipality, the purpose of which is to improve the efficiency of capital management. But most often, of course, the instruments of monetary policy involve government agencies. Let us consider the main tasks that the Central Bank of the Russian Federation solves in this area of activity.

Bank tasks in terms of monetary policy

So, the Central Bank of Russia is the main subject that uses various instruments of monetary policy. This institution has to solve the following range of tasks:

regulation of inflation;
decrease in unemployment;
maintaining the exchange rate of the national currency;
ensuring the stability of the state's balance of payments;
ensuring the functioning of the banking system;
maintaining the work of payment mechanisms in the economy;
establishment of adequate interest rates in the field of lending.

Classification of monetary policy principles

A central bank may apply several monetary policy strategies. Experts distinguish two main ones - rigid and flexible. What are their specifics?

With a strict method of managing financial flows, those monetary policy instruments are selected that are aimed at ensuring the circulation in the economy of a specific amount of money supply. A flexible model, on the other hand, involves the use of those approaches that involve the regulation, mainly, of credit mechanisms - most often, by increasing or decreasing the interest rate. In the case of the Central Bank of the Russian Federation, the value of the key rate is regulated, which is the determining factor in the conditions for issuing loans from private banks to their customers.

There are other criteria for classifying monetary policy. So, the Central Bank can practice a stimulating approach. He assumes that monetary policy instruments will be chosen that stimulate the business activity of economic entities and, as a result, economic growth and the emergence of new jobs.

There is, in turn, a restraining approach. He assumes that the tools of the monetary policy of the Central Bank will choose those that are aimed at reducing entrepreneurial activity. This approach is used primarily to counteract inflation. The main instruments of monetary policy of the stimulating type:

easing reserve requirements for private banks;
reduction of the key rate;
active purchase of government bonds by the Central Bank.

These measures involve stimulating activities in 3 segments of the economy at once - the banking sector, business in the real sector, as well as in the stock markets.

The main monetary policy instruments of a contractionary type are:

tightening reserve requirements for private banks;
increase in the key rate;
sale by the Central Bank of securities issued by the state.

Similarly, the effect of using the listed tools is observed in several business segments at once.

Methods of monetary policy

So, we have considered the essence of the concept of "monetary policy", the instruments of monetary policy. But there are a number of other nuances that characterize the activities in question. In particular, it will be useful to consider what methods of monetary policy can be applied by the state. There are several ways to classify them. Thus, there is a widespread approach in which direct and indirect methods are distinguished. Let's study their essence in more detail.

What are direct methods of monetary policy?

Direct methods of monetary policy of the authorities assume that the Central Bank will use mainly administrative tools to regulate monetary policy. This may be the application of limits on the provision of loans or the placement of deposits by private banks. This approach allows the Central Bank to influence, first of all, the value of the money supply in the economy and, as a result, to be able to regulate inflation. The main advantage of the corresponding methods is the possibility of obtaining a prompt result.

As a rule, those instruments of the state's monetary policy that are involved in such scenarios lead to rapid changes in the national economy. However, their impact, as a rule, is not fundamental. Therefore, the achievement of a short-term effect from the use of direct methods of monetary management of the economy most often requires the Central Bank to apply subsequent measures that consolidate the result.

The essence of indirect methods in monetary policy

The specificity of indirect methods is that their application is characterized by the involvement, mainly, of market mechanisms. For example, the introduction of updated regulations for the activities of private banks, which may affect the policy of determining their priorities in building a business model.

The main advantage of the methods of this type is their fundamental nature, despite the relatively low efficiency in obtaining the results of their application. It can be noted that experts also classify monetary policy methods into general and selective. The former, in principle, are similar to indirect ones, the mechanisms for implementing the latter are similar to those that characterize the use of direct methods.

So, we have considered what constitutes monetary policy, monetary policy instruments, its main methods have also been described. It will be useful now to study a number of practical aspects of their application.

Monetary Policy Practice: Central Bank Participation in Market Operations

A sufficiently effective and widespread instrument of monetary policy is the participation of the Central Bank in market transactions. Let's take a look at how it can be done.

The activities of the Central Bank in the field of market operations may consist primarily in the purchase or sale of reserve assets using their own reserves. Another common type of activity of the Central Bank in this direction is the management of the state's gold and foreign exchange reserves. This type of activity allows, first of all, to effectively manage the debt policy of the state, as well as to influence the investment attractiveness of the country's economy. Another way for the Central Bank to participate in market transactions is participation in foreign exchange trading. Most often, it is carried out in the form of interventions, which are sessions of selling or buying national or foreign currency in order to adjust the level of its supply or demand.

Monetary policy practice: discount rate management

The next practical tool of monetary policy is the management of the discount rate. Its essence is in determining the amount of interest that private banks pay to the Central Bank in exchange for the funds that they borrow from it in order to use it in the structure of their own capital. If the Central Bank reduces the discount rate, then private credit institutions, as a rule, begin to borrow from the Central Bank more actively - as well as offer various financial services to their customers.

Of course, the interest on loans for clients also decreases - and this is an additional stimulating factor in the growth of capital turnover in a financial institution. In turn, an increase in the discount rate is accompanied, as a rule, by the opposite effect, but at the same time, as we noted above, it helps to counteract inflation.

Special methods of monetary policy

The Central Bank and other financial institutions may also apply special methods of monetary policy. Among these are the promotion of exports of national products, technologies, capital, and various services. These methods are implemented by activating lending to enterprises that are ready to carry out appropriate supplies, signing contracts under which the Central Bank guarantees the provision of various investment programs. Another way to stimulate exports is to adjust duties, change the value of various quotas.

The priorities of the state in choosing the priorities of monetary policy depend on many factors - internal and external. Often they are classified as political, that is, they are not directly related to the functioning of the mechanisms of supply and demand in the market. The competence of the Central Bank and other financial institutions may not be enough to adequately influence economic processes in the face of excessive influence in economic factors - therefore, other government institutions may be involved in the regulation of economic processes. Issues of an economic nature may become a priority for the government of the country and the highest authorities in general, although in the general case they are within the competence of a fairly limited circle of financial institutions.

Monetary Policy Instruments of the Bank of Russia

Let us now study what are the main instruments of the monetary policy of the Bank of Russia. In accordance with the provisions of the law, these should include:

determination of interest rates on own operations,
setting standards for reserves,
which are deposited with the Central Bank of the Russian Federation,
transactions on the open market,
refinancing of credit and financial institutions,
carrying out foreign exchange interventions,
management of money supply growth criteria,
setting quantitative limits,
issuance of securities.

According to experts, the Russian Central Bank focuses its actions on the use of mainly indirect methods of managing cash flows in the economy. But the legislation of the Russian Federation allows that the instruments of the monetary policy of the Russian Federation will be applied by those that are classified as direct. In particular, in the form of quantitative restrictions, which can be expressed in the approval of limits on refinancing operations or the conduct of individual transactions by credit and financial institutions.

In general, the Central Bank of the Russian Federation acts as an independent subject of monetary policy. First of all, this is due to the fact that this structure has legal independence from state authorities. However, in some cases, its activities must be coordinated with the government of the Russian Federation.

The Bank of Russia rarely practices measures of direct influence on the work of private financial institutions - but it may well determine certain recommendations for them. For example, they may be associated with a decrease in the volume of foreign assets in order to curb capital outflows. Also, the Central Bank of the Russian Federation may determine recommendations for private credit structures on the amount of interest rates in rubles in order to ensure optimal liquidity in banks.

Summary

A market economy is being built in the Russian Federation. Therefore, the instruments of Russia's monetary policy are adapted to the mechanisms of free formation of supply and demand in the national economy. Perhaps this explains the involvement of the Central Bank of the Russian Federation mainly indirect methods of regulating money circulation in the economy. But theoretically, the main financial institution of the Russian Federation can apply the entire range of those monetary policy instruments that we have discussed above - the legislation does not prohibit this.

The Central Bank, as the main subject of monetary regulation of the national economy, can choose those instruments and methods of monetary policy that are best adapted to the current economic situation. If they are direct, then the Central Bank of the Russian Federation has the right to expect an operational, but sufficiently superficial result, requiring further intervention in economic processes. Indirect methods of intervention of the Central Bank in the economy do not always give a quick result, but are characterized by a fundamental impact on the processes that take place in the national economy.

In some cases, assistance in the implementation of monetary policy to the Central Bank may be provided by other state structures. This may be due to the fact that the competence of the Central Bank may not be enough to solve problems that have arisen as a result of the influence of factors that are not directly related to economic processes. In addition, the Central Bank may have an obligation to consult with other government agencies due to the fact that the methods it uses may affect other areas for the development of which the relevant authorities are responsible.

Direct and indirect regulation of the monetary sphere.

Within the framework of monetary policy, direct and indirect regulation of the monetary sphere is applied. Direct regulation is carried out through administrative measures in the form of various central bank directives regarding the volume of money supply and prices in the financial market. The implementation of these measures gives the most rapid effect in terms of central bank control over the price or the maximum volume of deposits and loans, especially in the context of an economic crisis. However, over time, direct methods of influence in the event of an “unfavorable” impact on their activities from the point of view of economic entities can cause an overflow, an outflow of financial resources into the “shadow economy” or abroad.

Indirect regulation of the monetary sphere -- the impact on the motivation of the behavior of economic entities through market mechanisms. Its effectiveness is closely related to the degree of development of the money market. In transitional economies, especially at the first stages of transformation, both direct and indirect instruments are used, with the former being gradually replaced by the latter.

General and selective methods of monetary regulation. In addition to dividing the methods of monetary regulation into direct and indirect, there are also general and selective methods for implementing the monetary policy of central banks.

General methods are predominantly indirect, affecting the money market as a whole.

Selective methods regulate specific types of credit and are mainly prescriptive. Their appointment is connected with the solution of particular problems, such as, for example, limiting the issuance of loans by certain banks or limiting the issuance of certain types of loans, refinancing on preferential terms of certain commercial banks, etc. Using selective methods, the central bank retains the functions of centralized redistribution of credit resources. Such functions are unusual for the central banks of countries with market economies. The use in the practice of central banks of selective methods of influencing the activities of commercial banks is typical of an economic policy pursued at the stage of a cyclical downturn, in conditions of a sharp violation of the proportions of reproduction.

Instruments of monetary regulation.

In world economic practice, central banks use the following instruments of monetary regulation in the framework of monetary policy: change in the required reserve ratio, or the so-called reserve requirements; interest rate policy of the central bank, i.e. changing the mechanism of borrowing funds by commercial banks from the central bank or depositing funds of commercial banks with the central bank; open market operations with government securities.

Mandatory reserves.

Required reserves represent a percentage of a commercial bank's liabilities. Commercial banks are required to keep these reserves at the central bank. Historically, required reserves have been viewed by central banks as an economic instrument designed to provide commercial banks with sufficient liquidity and, in the event of a run on deposits, prevent commercial bank insolvency and thereby protect the interests of its customers, depositors and correspondents. However, at present, changing the reserve requirement of commercial banks or reserve requirements is used as a fairly simple tool used to most quickly correct the monetary sphere. The mechanism of action of this monetary policy instrument is as follows:

- if the central bank increases the required reserve ratio, this leads to a reduction in the free reserves of banks, which they can use for lending operations. Accordingly, this causes a multiplier decrease in the money supply;
- with a decrease in the required reserve ratio, a multiplier expansion of the money supply occurs.

This instrument of monetary policy is, according to experts dealing with this problem, the most powerful, but rather crude, since it affects the foundations of the entire banking system. Even a slight change in the required reserve ratio can cause significant changes in the volume of bank reserves and lead to changes in the credit policy of commercial banks.

Interest rate policy of the Central Bank.

The interest rate policy of the central bank can be represented in two directions: as the regulation of loans to commercial banks and as its deposit policy. In other words, it is the policy of the discount rate or the refinancing rate. The refinancing rate refers to the percentage at which the central bank lends to financially sound commercial banks, acting as the lender of last resort. The discount rate is the percentage (discount) at which the central bank takes into account bills of commercial banks, which is a type of their lending secured by securities.

The discount rate (refinancing rate) is set by the central bank. Reducing it makes loans cheap for commercial banks. When commercial banks receive credit, the reserves of commercial banks increase, causing a multiplier increase in the amount of money in circulation. Conversely, an increase in the discount rate (refinancing rate) makes loans unprofitable. Moreover, some commercial banks that have borrowed funds are trying to return them, as they become very expensive. The reduction in bank reserves leads to a multiplier reduction in the money supply.

Determining the size of the discount rate is one of the most important aspects of monetary policy, and a change in the discount rate from the nut is an indicator of changes in the field of monetary regulation. The size of the discount rate usually depends on the level of expected inflation and at the same time has a great influence on inflation. When a central bank intends to ease or tighten monetary policy, it lowers or raises the discount (interest) rate. The Bank may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate. Central bank interest rates are optional for commercial banks in their lending relationships with their customers and with other banks. However, the level of the official discount rate is a benchmark for commercial banks when conducting lending operations.

Operations on the open market.

The operations of the central bank in the open market are currently the main instrument of monetary policy in world economic practice. The central bank sells or buys securities at a predetermined rate, including government securities that form the country's domestic debt. This instrument is considered to be the most flexible in the regulation of credit investments and liquidity of commercial banks.

Operations of the central bank in the open market have a direct impact on the amount of free resources available to commercial banks, which stimulates either the reduction or expansion of credit investments in the economy, while simultaneously affecting the liquidity of banks, respectively, reducing or increasing it. Such influence is carried out by changing the price of purchase from commercial banks or sale of securities by the central bank. With a strict restrictive policy aimed at the outflow of credit resources from the loan market, the central bank reduces the sale price or increases the purchase price, thereby increasing or decreasing its deviation from the market rate accordingly.

If the central bank buys securities from commercial banks, it transfers money to their correspondent accounts, and thus the credit resources of banks increase. They begin to issue loans, which, in the form of non-cash real money, enter the sphere of monetary circulation. If the central bank sells securities, then commercial banks pay for such a purchase from their correspondent accounts, thereby reducing their credit resources.

Open market operations are carried out by the central bank, usually in cooperation with a group of large banks and other financial and credit institutions.

The scheme for carrying out these operations is as follows:

suppose that there is an excess of money supply in circulation in the money market and the central bank sets the task of limiting or eliminating such an excess. In this case, the central bank begins to actively offer government securities on the open market to banks or the public, who buy government securities through special dealers. As the supply of government securities increases, their market price falls, and interest rates on them rise, and, accordingly, their "attractiveness" for buyers increases. The population (through dealers) and banks are beginning to actively buy government securities, which ultimately leads to a reduction in bank reserves. The reduction in bank reserves, in turn, reduces the money supply in a proportion equal to the bank multiplier. At the same time, the interest rate rises;

Let us now suppose that in the money market there is a shortage of money in circulation. In this case, the central bank pursues a policy aimed at expanding the money supply, namely: the central bank begins to buy government securities from banks and the public at a favorable rate for them. Thus, the central bank increases the demand for government securities. As a result, their market price rises and their interest rate falls, making Treasury securities “unattractive” to their holders. The population and banks begin to actively sell government securities, which ultimately leads to an increase in bank reserves and (taking into account the multiplier effect) to an increase in the money supply. At the same time, the interest rate falls.

Management of the cash supply is the regulation of the circulation of cash: emission, organization of their circulation and withdrawal from circulation, carried out by the central bank.

Currency regulation.

Currency regulation as an instrument of monetary policy has been used by central banks since the 30s of the XX century. As a reaction to the "flight of capital" from the country in the context of the economic crisis and the Great Depression. Currency regulation refers to the management of foreign exchange flows and external payments, the formation of the exchange rate of the national currency.

The exchange rate is influenced by many factors: the state of the balance of payments; export and import; share of foreign trade in gross domestic product; budget deficit and sources of its coverage; economic and political situation, etc. Real in given specific conditions exchange rate can be determined as a result of free offers for the purchase and sale of currency on currency exchanges. An effective system of currency regulation is foreign exchange intervention. It lies in the fact that the central bank intervenes in operations in the foreign exchange market in order to influence the exchange rate of the national currency by buying or selling foreign currency. To increase the exchange rate of the national currency, the central bank sells foreign currency, to reduce it, it buys foreign currency in exchange for the national one. The Central Bank conducts foreign exchange interventions in order to bring the exchange rate of the national currency as close as possible to its purchasing power and at the same time find a compromise between the interests of exporters and importers. Exporting firms are interested in some undervaluation of the national currency, they provide the bulk of the incoming foreign exchange earnings. Enterprises that receive raw materials, materials, components from abroad, as well as industries that produce products that are uncompetitive compared to foreign products, are interested in some overestimation of the national currency.

Plan

Introduction………………………………………………………………….……..…3

1. The banking system of the Russian Federation…………………….……….….4

1.1 Formation of a two-tier banking system………………….…..4

1.2 The modern banking system of the Russian Federation……………….6

2. The Central Bank of the Russian Federation……………………………………7

2.1 Status and objectives of the Central Bank of Russia………………………………..7

2.2 Structure of the Central Bank of Russia…………………………………….8

2.3 Functions of the Central Bank of Russia……………………………………….12

2.4 Instruments and methods of monetary policy …………………14

3. Monetary policy of the Central Bank of the Russian Federation………………………………………………………………………….16

3.1 Main tasks, goals and forms of monetary regulation…16

3.2 Monetary policy methods…………………………………….17

3.3 Monetary policy instruments………………………………..20

4. Main Directions of the Unified State Monetary Policy for 2008……………………………………………………………...34

4.1 Monetary policy principles for the medium term………………………………………………………..………..…..34

4.2 Monetary policy objectives and instruments in 2008………37

Conclusion …………………………………………………………………………41

List of literature used…………………………………………………43

The Central Bank is the central link of the monetary system of any state; it combines the features of an ordinary (commercial) banking institution and a government department. The Central Bank is vested with the right to monopoly issue banknotes, regulate money circulation and the exchange rate, and store gold and foreign exchange reserves. The most important function of the Central Bank is the development of a common credit policy.

Monetary policy is a very effective tool for influencing the country's economy, which does not violate the sovereignty of the majority of subjects in the business system. Although at the same time there is a restriction of the scope of their economic freedom (without this, any regulation of economic activity is generally impossible), but the state influences the key decisions made by these entities only indirectly.

Ideally, monetary policy is designed to ensure price stability, full employment and economic growth - these are its highest and ultimate goals. However, in practice, with its help, it is also necessary to solve narrower tasks that meet the urgent needs of the country's economy.

We must not forget that monetary policy is an extremely powerful and therefore extremely dangerous tool. With its help, it is possible to get out of the crisis, but a sad alternative is not ruled out - the aggravation of the negative trends that have developed in the economy. Only very balanced decisions made at the highest level after a serious analysis of the situation, consideration of alternative ways of influencing monetary policy on the economy of the state, will give positive results. Without the right monetary policy, the economy cannot function effectively.

1. BANKING SYSTEM OF RUSSIA

1.1. Formation of a two-tier banking system

The modern banking system was created as a result of reforming the state credit system that developed during the period of a centrally planned economy. At that time, the state credit system included three monopoly banks: the State Bank of the USSR, the Stroybank of the USSR, the Vneshtorgbank of the USSR, each of which performed strictly defined functions in the system of centralized planned management of the economy.

The basis of monetary regulation in that period was credit and cash planning, as well as balancing the income and expenses of the population, including measures to change retail prices for goods and services, wages, pensions, etc. The structure and functions of the banking system that developed during the period building socialism, fully consistent with a centrally planned, administratively controlled economy.

The proclamation of new principles of economic management required a revision of the existing structure of the credit system, the functions of its individual links and forms of organization of credit relations. The reform of the state credit system began as part of the radical economic reform of 1987. It provided for a change in the organizational structure of the banking system, an increase in the role of banks in the economy and an increase in their influence on the development of the national economy.

In 1987, at the first stage of reforming the state credit system, the concept of reorganization of the banking system was developed, which included:

creation of a two-tier banking system, the upper level of which was to be occupied by the State Bank of the USSR as the Central Bank of the country, and the lower level by newly created state specialized banks (Industrial Construction Bank of the USSR, Zhilsotsbank of the USSR, Agroprombank of the USSR, Vnesheconombank of the USSR, Sberbank of the USSR). These banks were entrusted with the credit and settlement services of the respective national economic complexes. The State Bank of the USSR was supposed to act as a coordinator of the activities of specialized banks and a conductor of a unified state monetary policy:

· transfer of state specialized banks to self-financing and self-financing, increasing the interest of the lower levels of banks in efficient and high-quality servicing of enterprises in various sectors of the economy;

introduction of new forms and methods of credit relations with enterprises and organizations (crediting based on the totality of inventories and production costs, bill settlements, factoring, leasing, etc.)

As a result of the system of banks, their ties with the economy have strengthened, the role of credit in the innovation process has increased, and the structure of credit investments has improved. However, there were no fundamental changes in the credit system (in fact, they were not expected): the monopoly structure of the banking system was not eliminated, since the spheres of influence among the banks were distributed administratively according to the departmental type; conditions for the free flow of capital and the formation of the financial market were not created.

The State Bank of the USSR, subordinate to the government of the country, remained an administrative body and could not pursue an independent monetary policy. He failed to master the instruments inherent in central banks to influence the monetary system. The problems of economic management of the country's money turnover, regulation of the activities of the lower levels of the banking system, development of competition between banks necessitated deepening reforms in the banking system.

1.2 Modern Russian banking system

The second stage of the banking reform, aimed at a comprehensive reconstruction of the system of economic relations in the field of credit, began in 1988 with the creation of the first commercial banks on a share and joint-stock basis. In parallel with the creation of commercial banks, the process of corporatization of state specialized banks began. These banks were full-fledged market entities: they pursued an independent credit policy, were focused on making a profit, and bore full responsibility for their decisions, which fundamentally differed from institutions of specialized banks.

The creation of non-state commercial banks meant overcoming the monopoly in the banking sector, abandoning the sectoral specialization of banks, and developing commercial principles in banking. Thus, the foundations of a two-tier banking system with its inherent possibility of self-regulation were laid. Commercial banks have played a positive role in the formation and development of the economic market system in the country, in creating an innovative environment that breaks traditional structures and opens the way for further transformations.

In order to create a system of monetary regulation adequate to the emerging market relations, the status of the State Bank and its role in the national economy of the country were changed. The Bank was removed from government control and thus obtained the necessary economic independence. After Russia gained sovereignty, the Central Bank of Russia was created on the basis of the State Bank on the basis of the concept adopted in states with developed market economies.

2. CENTRAL BANK OF THE RUSSIAN FEDERATION

2.1 Status and objectives of the Central Bank of Russia

The Central Bank of the country is the main link in the banking system of any state. It reflects the national interest, pursues a policy in the interests of the state, forms the main principles of all banking activities.

In the banking system, the Central Bank of the country plays a key role. The sustainability of the development of the national economy and its banking sector depends on its activities. By regulating money circulation in cash and non-cash forms, the Central Bank creates economic prerequisites for the movement of goods and services from producer to consumer.

The independence of the Central Bank is relative within the framework of government structures, since its economic policy is determined by the priorities of the macroeconomic course of the government and cannot be successful without coordinating its main elements with the government. The main goal of the Central Bank in the development of a market economy is to maintain monetary and foreign exchange stabilization for the purpose of economic growth.

The Central Bank of the Russian Federation (Bank of Russia) was established on the basis of the law "On the Central Bank of the Russian Federation (Bank of Russia)" on December 2, 1990. Its main task in a two-tier banking system was to maintain the stability of the functioning of the country's banking and monetary systems, to organize management processes operations of banks at the macroeconomic level, coordination of the activities of banks and other financial institutions.

The historical development of the banking system of Russia, the adopted legislative and regulatory acts are reflected in the Federal Law "On Amendments and Additions to the Law of the RSFSR "On the Central Bank of the Russian Federation (Bank of Russia)" dated April 12, 1995. With subsequent amendments and additions by which the Central the bank is guided by and now. This document, which defines the goals, functions, rights and obligations and the mechanism of activity of the Central Bank, contains 95 articles (instead of 39 in the law "On the Central Bank of the Russian Federation (Bank of Russia)" of December 2, 1990).

The main objectives of its activities are:

Protecting and ensuring the stability of the national currency - the ruble, including its purchasing power and exchange rate against foreign currencies;

Development and strengthening of the banking system of the Russian Federation;

Ensuring the efficient and uninterrupted functioning of the settlement system.

Making a profit is not the goal of the Central Bank. In accordance with the Federal Law, this is a government body that plays the role of a "bank of banks" and is endowed with the rights and powers of the monopoly issue of banknotes, regulation of money circulation, credit and banking activities, the foreign exchange sector, and storage of gold and foreign exchange reserves. The Central Bank is not liable for the obligations of the state, just as the state is not liable for the monetary obligations of the bank, if they are not accepted on the basis of federal legislation.

2.2 Structure of the Central Bank of Russia

The Central Bank, within its powers granted by the Constitution of the Russian Federation and federal laws, is independent in its activities from the administrative and executive bodies of state power and is accountable to the highest legislative body of its state - the State Duma of the Federal Assembly of the Russian Federation.

The supreme body of the Central Bank is the Board of Directors, which determines the main directions of its activities and manages and manages it. This is a collegial body, which includes the Chairman of the Bank of Russia and 12 members of the Board of Directors. The Chairman is appointed by the State Duma for a period of 4 years by a majority vote of the total number of deputies. Council members work on a permanent basis at the Bank of Russia.

Board of Directors in accordance with Art. 16 of the Law performs the following tasks:

1) develops and ensures the implementation of the main directions of the unified state monetary policy of the state in cooperation with the Government of the Russian Federation;

2) approve the annual report of the Central Bank and submit it to the State Duma;

3) review and approve the expense account of the Central Bank for the next year;

4) determine the structure of its subdivisions;

5) makes decisions regarding:

· Creation and liquidation of institutions and organizations of the Central Bank;

· Establishing mandatory standards for credit institutions;

the amount of reserve requirements;

· changes in interest rates of the Central Bank;

· determination of limits of operations on the open market;

participation in international organizations;

· purchase and sale of real estate to ensure the activities of the Central Bank;

application of direct quantitative restrictions;

Issue and withdrawal of banknotes and coins from circulation, on the total volume of cash issue;

· the procedure for the formation of reserves by credit institutions;

6) submit proposals to the State Duma on changing the authorized capital of the Central Bank;

7) approves the procedure for its work;

8) appoint the chief auditor of the Central Bank;

9) approves its internal structure;

10) determine the conditions for the admission of foreign capital to the banking system of the Russian Federation.

To improve the monetary system and coordinate the work of the Central Bank, legislative and executive authorities, ministries, departments, economic structures and credit institutions, the National Banking Council was created under it, which consists of two chairmen from the chambers of the Federal Assembly of the Russian Federation and the Government of the Russian Federation, as well as the Minister of Finance of the Russian Federation and the Minister of Economy of the Russian Federation. The rest of its members are appointed by the State Duma on the proposal of the Chairman of the Central Bank. As an expert advisory body, it performs the following functions:

· considers drafts of the main directions of the unified state monetary policy, the policy of currency regulation and currency control;

· defines the concept of improvement and development of the banking system;

· develops the basic principles for organizing the settlement system in the Russian Federation and regulating the activities of credit institutions;

· performs expertise of draft laws and other normative acts in the field of banking.

The law confirms the organization of the Central Bank on the principle of a single centralized system with a vertical subordination scheme, including the central office, territorial offices, RCC, computer centers, educational and other institutions. The national banks of the republics within the Russian Federation are territorial institutions of the Central Bank. As divisions of the Bank of Russia, they do not have the status of a legal entity. In addition, they cannot make decisions of a regulatory nature, as well as issue guarantees, guarantees, promissory notes and other obligations.

The Central Bank of the Russian Federation has an authorized capital that serves as a security for its obligations, can create reserves and funds for various purposes at the expense of its profits, including an insurance fund formed from mandatory contributions from commercial banks on the terms and in the manner determined by the Bank's Charter. The standards for deductions of profits to these funds and the procedure for their spending are determined by the Board of Directors.

The Central Bank issues regulations that are binding on federal government bodies, subjects of the federation, local governments, as well as for all legal entities and individuals. They are not retroactive.

The reporting period is set from January 1 to December 31 of each year. The structure of the bank's balance sheet is determined by the Board of Directors. The annual report is submitted annually to the State Duma no later than 15 May. The latter considers it before July 1 of the next year and sends it with its conclusion to the Government and the President of the Russian Federation. After that, it is published no later than July 15 of the next year. In addition, the central bank monthly publishes its balance sheet, data on monetary circulation, including the dynamics and structure of the money supply, and generalized data on its operations.

The Central Bank transfers to the federal budget 50% of the actually received balance sheet profit for the year after the approval of the bank's annual report by the Board of Directors, the remaining profit - to reserves and funds for various purposes. He and his institutions are exempt from paying all taxes, collecting duties and other payments on the territory of the Russian Federation.

To consider the annual report of the central bank, the State Duma, before the end of the reporting year, decides on its audit and appoints an audit firm that has a license to carry out banking audits in the territory of the Russian Federation.

The internal audit of the Central Bank is carried out by the Chief Auditor Service, directly subordinate to the Chairman of the Central Bank.

2.3 Functions of the Central Bank of Russia

The Bank of Russia performs its functions in accordance with the Constitution of the Russian Federation and the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and other federal laws. According to Article 75 of the Constitution of the Russian Federation, the main function of the Bank of Russia is to protect and ensure the stability of the ruble, and money emission is carried out exclusively by the Bank of Russia. In accordance with Article 4 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", the Bank of Russia performs the following functions:

In cooperation with the Government of the Russian Federation develops and implements a unified monetary policy;

Monopoly issues cash and organizes cash circulation;

Is a lender of last resort for credit institutions, organizes a system of their refinancing;

Establishes the rules for making settlements in the Russian Federation;

Establishes the rules for conducting banking operations;

Maintains the accounts of budgets of all levels of the budgetary system of the Russian Federation, unless otherwise established by federal laws, by carrying out settlements on behalf of authorized executive bodies and state non-budgetary funds, which are entrusted with organizing the execution and execution of budgets;

Carries out effective management of gold and foreign exchange reserves of the Bank of Russia;

Takes a decision on the state registration of credit institutions, issues licenses to credit institutions for banking operations, suspends their operation and revokes them;

Supervises the activities of credit institutions and banking groups;

Registers the issue of securities by credit institutions in accordance with federal laws;

Carries out independently or on behalf of the Government of the Russian Federation all types of banking operations and other transactions necessary to perform the functions of the Bank of Russia;

Organizes and carries out currency regulation and currency control in accordance with the legislation of the Russian Federation;

Determines the procedure for making settlements with international organizations, foreign states, as well as with legal entities and individuals;

Establishes accounting and reporting rules for the banking system of the Russian Federation;

Establishes and publishes official exchange rates of foreign currencies against the ruble;

Takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation;

Establishes the procedure and conditions for the implementation by currency exchanges of activities to organize operations for the purchase and sale of foreign currency, issues, suspends and revokes permits for currency exchanges to organize operations for the purchase and sale of foreign currency. (The Bank of Russia will perform the functions of issuing, suspending and revoking permits for currency exchanges to organize transactions for the purchase and sale of foreign currency from the date of entry into force of the federal law on the introduction of appropriate amendments to the Federal Law "On Licensing Certain Types of Activities");

Conducts analysis and forecasting of the state of the economy of the Russian Federation as a whole and by regions, primarily monetary, monetary, financial and price relations, publishes relevant materials and statistical data;

Performs other functions in accordance with federal laws.

2.4 Tools and methods of monetary policy

According to the law, the Central Bank develops and conducts, in cooperation with the Government of the Russian Federation, a unified state monetary policy. At the same time, he sets the main direction of the economic policy of the Government of the Russian Federation and uses economic levers to regulate the money supply in circulation and direct it to the appropriate sectors of the economy. The main instruments and methods of the monetary policy of the Central Bank are:

1) interest rates on operations of the Bank of Russia;

2) norms of required reserves deposited with the Bank of Russia (reserve requirements). Required reserve ratios may not exceed 20% of a credit institution's liabilities and may be differentiated for different credit institutions. Required reserve ratios cannot be changed by more than five points at a time;

3) operations on the open market (purchase and sale by the Bank of Russia of treasury bills, government bonds and other government securities, short-term operations with securities with the conclusion of a reverse transaction later);

4) refinancing of banks (crediting by the Bank of Russia to banks, including accounting and rediscounting of promissory notes);

5) currency regulation (purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money);

6) setting benchmarks for the growth of the money supply;

7) direct quantitative restrictions (setting limits on refinancing

8) banks and certain banking operations carried out by credit institutions).

3. MONETARY POLICY OF THE CENTRAL BANK

3.3 Main tasks, goals, and forms of monetary regulation

Monetary regulation carried out by the Central Bank is one of the elements of the state's economic policy and is a set of measures aimed at changing the money supply in circulation, the volume of loans, the level of interest rates and other indicators of money circulation and the loan capital market. It aims to achieve stable economic growth, low inflation and unemployment. The laws on Central Banks emphasize their responsibility for the stability of monetary circulation and the exchange rate of the national currency.

By implementing monetary policy, the Central Bank, influencing the lending activities of commercial banks and directing regulation to expand or reduce lending to the economy, achieves stable development of the domestic economy, strengthening monetary circulation, and balancing domestic economic processes. Thus, the impact on credit makes it possible to achieve deeper strategic objectives for the development of the entire economy as a whole.

Monetary policy is based on the theory of money, which studies, in particular, the process of the impact of money and monetary policy on the state of the economy as a whole. In modern conditions, states with market economy models use one of two concepts of monetary policy:

· the policy of credit expansion, or "cheap" money;

· policy of credit restriction, or "expensive" money.

The credit expansion of the Central Bank increases the resources of commercial banks, which, as a result of loans issued, increase the total supply of money in circulation. Credit restriction entails limiting the ability of commercial banks to issue loans and thereby saturate the economy with money.

The development of monetary policy by the Bank of Russia is carried out in accordance with Art. 45 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". The Bank of Russia annually no later than August 26 submits to the State Duma a draft of the main directions of the unified state monetary policy for the coming year and no later than December 1 - the main directions of the unified state monetary policy for the coming year. The project is preliminary presented to the President and the Government of Russia.

The State Duma considers the main directions of the unified state monetary policy for the coming year and makes an appropriate decision no later than the adoption by the State Duma of the federal law on the federal budget for the coming year. Thus, the unity of the goals of conducting monetary and financial policy is achieved.

Monetary policy is carried out using certain methods and tools.

3.2 Monetary Policy Methods

Monetary policy methods are a set of techniques and operations through which the subjects of monetary policy - the Central Bank as the state body of monetary regulation and commercial banks as "conductors" of monetary policy - affect the objects (demand for money and supply money) to achieve the set goals. The methods of conducting daily monetary policy are also called tactical objectives of monetary policy.

The modern system of monetary policy methods is as diverse as monetary policy itself. The classification of monetary policy methods can be carried out according to various criteria.

Direct and indirect regulation of the monetary sphere

Within the framework of monetary policy, methods of direct and indirect regulation of the monetary sphere are applied. Direct methods have the character of administrative measures in the form of various directives of the Central Bank regarding the volume of the money supply and the price in the financial market. The implementation of these measures gives the most rapid effect in terms of central bank control over the price or the maximum volume of deposits and loans, especially in the context of an economic crisis. However, over time, direct methods of influence in the event of an “unfavorable” impact on their activities from the point of view of economic entities can cause an overflow, an outflow of financial resources into the “shadow economy” or abroad.

Indirect methods of regulation of the monetary sphere affect the motivation of the behavior of economic entities with the help of market mechanisms. Naturally, the effectiveness of using indirect methods of regulation is closely related to the degree of development of the money market. In transitional economies, especially at the first stages of transformation, both direct and indirect instruments are used, with the former being gradually replaced by the latter.

General and selective methods of monetary regulation

In addition to dividing the methods of monetary regulation into direct and indirect, there are also general and selective methods for implementing the monetary policy of the Central Bank.

General methods are predominantly indirect, affecting the money market as a whole.

Selective methods regulate specific types of credit and are mainly prescriptive. Their appointment is connected with the solution of particular problems, such as, for example, limiting the issuance of loans by certain banks or limiting the issuance of certain types of loans, refinancing on preferential terms of certain commercial banks, etc. Using selective methods, the Central Bank retains the functions of centralized redistribution of credit resources. Such functions are unusual for the Central Banks of countries with market economies. The use in the practice of Central banks of selective methods of influencing the activities of commercial banks is typical of an economic policy pursued at the stage of a cyclical downturn, in conditions of a sharp violation of the proportions of reproduction.

At the same time, direct methods of monetary policy are rough methods of external influence on the functioning of money market entities and affect the foundations of their economic activity. They may contradict the microeconomic interests of credit institutions, lead to inefficient allocation of credit resources, to restrictions on interbank competition, and difficulties in the emergence of new financially stable institutions in the banking market.

Thus, the negative consequences of direct methods of monetary policy often prevail over the advantage of their application in market conditions, since they distort the market mechanism.

Therefore, the Central banks of countries with developed market economies have practically abandoned the direct methods of monetary policy and resort to them in exceptional cases when it is necessary to take “quick response measures”, for example, in conditions of a sharp development of the economic crisis.

The practice of forming a market economy and its development proved the low efficiency of direct methods of monetary policy. As a result, there is a widespread displacement of direct methods of monetary policy by indirect ones.

The choice of the type of monetary policy pursued, and, accordingly, the set of instruments for regulating the activities of commercial banks, is carried out by the Central Bank based on the state of the economic situation in each specific case. Based on this choice, the main directions of monetary policy are approved by the legislature. At the same time, it is necessary to take into account the time lag between the implementation of a particular measure of monetary regulation and the manifestation of the effect of its implementation. The effectiveness of the application of various types of monetary policy is determined by the extent to which the destabilization of money turnover is caused by “purely” monetary, rather than general economic and political factors.

3.3 Monetary Policy Instruments

The impact of the subjects of monetary policy on its objects is carried out with the help of a set of specific tools. The instruments of monetary policy are understood as a means, a way of influencing the Central Bank as a body of monetary regulation on the objects of monetary policy.

The Federal Law "On the Central Bank of the Russian Federation" (Article 35) defines the main instruments of monetary policy:

1. Operations on the open market.

2. Standards for required reserves deposited with the Central Bank (reserve requirements).

3. Interest rates on operations of the Central Bank.

4. Refinancing of credit institutions.

5. Foreign exchange intervention.

6. Establishment of benchmarks for the growth of the money supply.

7. Direct quantitative restrictions.

8. Issuance of bonds in one's own name.

Let us consider in more detail the instruments of the monetary policy of the Russian Federation.

Open market operations

Economic measures to regulate monetary policy also include operations of the Central Bank in the open market with securities. The open market policy is the sale and purchase of government securities by the Central Bank in order to influence the money market. The main objective of the open market policy is to regulate the supply and demand for securities and cause an appropriate response from commercial banks.

The open market policy is a tool for quick and flexible action. When selling and buying securities, the Central Bank tries to influence the volume of liquid funds of commercial banks by offering favorable interest rates and thereby manage their credit emission. By buying securities on the open market, he increases the reserves of commercial banks and contributes to the growth of the money supply. This is especially effective in times of crisis. During a period of high market conditions, the Central Bank offers commercial banks to buy securities in order to reduce their credit opportunities in relation to the economy and the population.

The Central Bank can pursue such a policy in two ways. First, he can determine the level of purchase and sale and the interest rates at which banks can buy securities from him. The rate of sale of securities is set differentially, depending on their term. In this case, the impact on the formation of market rates will be indirect. Second, the Central Bank can set the interest rates at which it is willing to buy securities.

The success of an open market policy depends on many factors. Commercial banks purchase securities from the Central Bank only when there is little demand for loans from entrepreneurs and the public, and also when the Central Bank offers open market securities on more favorable terms for commercial banks than the conditions for providing loans from commercial banks to entrepreneurs and the public.

When it is necessary to maintain the liquidity of commercial banks, and, accordingly, their credit activity, the Central Bank acts as a buyer on the open market. In this case, repurchase agreements are widely used, according to which the Central Bank undertakes to buy securities from commercial banks on the condition that the latter, after a certain period of time, make a reverse transaction, i.e. repurchase of securities, but already at a discount - the so-called reverse operations (REPO operations). This discount can be fixed or floating between two borders. Reverse operations on the open market are characterized by a softer impact on the money market and therefore are a more flexible method of regulation.

Bank refinancing

Initially, the policy of refinancing commercial banks by the Central Bank was used solely to influence the state of monetary circulation. With the development of market relations, refinancing has been increasingly used as a tool for providing financial assistance to commercial banks. The Central Bank thus becomes the lender of last resort and functions as a "bank of banks". The refinancing loans will allow them to minimize their liquidity from the use of Central Bank borrowing. This is especially evident now in the banking system of Russia, where the main instrument for providing additional liquidity is the refinancing of banks. By decision of the Board of Directors of the Central Bank, during the restructuring of the banking system, banks will be provided with loans to maintain liquidity, increase financial stability, as well as stabilization loans for up to one year within the monetary policy guidelines. As the situation in the banking sector normalizes, it is planned to stop providing these loans.

Loan refinancing differs by:

Form of security - accounting and pawn loans;

Methods of provision - direct loans and loans sold by the Central Bank through auctions;

Target character - corrective and seasonal loans.

Interest policy or regulation of the official interest rate

The traditional function of the Central Bank is to provide loans to commercial banks. The interest rate at which these loans are issued is called the discount rate of interest or the refinancing rate. By changing this rate, the Central Bank can influence the reserves of banks, expanding or reducing their ability to provide credit to the population or enterprises. Depending on the value of the discount rate, a system of interest rates of commercial banks is built, the cost of credit in general becomes more expensive or cheaper, and thereby conditions are created for limiting or expanding the money supply in circulation. Commercial banks independently determine the amount of the allowance to the official refinancing rate of the Central Bank, depending on the financial condition of the borrower, the profitability of work, the prospects and priority of the loaned object.

The Central Bank regulates the level of interest rates in two ways:

Through fixing rates for the provision of loans to commercial banks, which serve as a certain benchmark for market rates;

Through control over the rates of lending institutions.

In the first case, the Central Bank, setting the official discount rate, determines the cost of attracting resources by banks: the higher the discount rate, the higher the cost of refinancing banking operations. In the second case, only the cost of certain types of credit or operations of only some banks is subject to regulation.

The interest rate policy of the Central Bank in the post-crisis period is to regulate interest rates on all bank operations in the money market in order to maintain the required level of liquidity in the banking system.

The Central Bank does not directly influence the interest rates on the transactions of commercial banks with their clients. These interest rates are determined by themselves and depend on the amount of money in circulation and the effectiveness of the intermediary activities of the banking system and financial markets.

During 1991-2008. The Central Bank has repeatedly changed the refinancing rate depending on the conditions prevailing in the money market. In 2008, the Central Bank increased the refinancing rate from 10% to 12% as of November 12, 2008, and from December 01, 2008, the rate will be set at 13%.

The rediscount of bills has long been one of the main methods of monetary policy of the central banks of Western Europe. Central Banks imposed certain requirements on the discounted bill, the main of which was the reliability of the promissory note.

Promissory notes are re-discounted at the rediscount rate. This rate is also called the official discount rate, usually it differs from the rate on loans (refinancing) by a small amount down. The Central Bank buys debt at a lower price than a commercial bank.

The scheme for rediscounting bills of exchange of the Central Bank is simple: a commercial bank, which receives the status of an accounting one from one of the divisions of the Central Bank, finances an exporting organization against the receipt of a promissory note issued in the name of an accounting bank. The discount bank, in turn, rediscounts (i.e., sells before maturity) this bill to the Central Bank at a predetermined percentage.

Accounting (discount loans) are loans provided by the Central Bank to commercial banks under the accounting of bills before their expiration. According to the laws in force in different countries, the Central Bank is authorized to buy from banks and sell them commercial and treasury bills based on the established discount rate. An important tool for influencing the state of monetary circulation is the use of quantitative restrictions on accounting loans available to banks by setting limits on the total amount of re-counted borrowings. The limit applies to all bills recounted by the Central Bank and can be set individually for individual institutions or in the form of restrictions on the volume of loans provided to one borrower. Depending on the monetary situation, rediscount limits are either reduced or increased. By raising the level of the limit, the Central Bank seeks to even out financial losses resulting from changes in market conditions, or to increase the credit resources of banks within the framework of the envisaged increase in the money supply. Therefore, an increase in the level of the credit limit does not mean that the Central Bank is carrying out an expansionary monetary policy, but is considered as a mechanism for regulating bank liquidity.

Lombard loans provided by the Central Commercial Bank are interest-bearing loans secured by securities. Loan amounts are set depending on the type of collateral. The value of the collateral must exceed the amount of the pawnshop loan. Lombard loans are provided only for short-term difficulties experienced by credit institutions. The interest rate of a pawnshop loan usually exceeds the discount rate by 1-3%.

Central Bank refinancing loans are divided into short-term - overnight loans, intraday loans - and medium-term - from 1-2 months to 6 months or up to 1 year.

Required reserves - one of the main tools for implementing the monetary policy of the Central Bank - are a mechanism for regulating the overall liquidity of the banking system. Minimum reserves are a mandatory rate of deposits of commercial banks in the Central Bank, established by law in order to limit the credit possibilities of credit organizations and maintain the amount of money in circulation at a certain level. The obligatory fulfillment of reserve requirements arises from the moment of obtaining a license from the Central Bank for the right to perform the relevant banking operations and is a necessary condition for their implementation. A credit institution is responsible for observing the procedure for depositing required reserves. The procedure for depositing required reserves is carried out on the basis of the “Regulations on the required reserves of credit institutions deposited with the Central Bank of the Russian Federation”, developed by the Central Bank in 1996. The amount of required reserves as a percentage of the obligations of a credit institution, as well as the procedure for their depositing with the Central Bank are established Board of Directors of the Central Bank. Required reserve ratios may not exceed 20% of a credit institution's liabilities. They cannot be changed by more than five points at a time. If the credit institution fails to comply with the requirements, the amount of the underpayment to the required reserves is collected, as well as fines for violation of the reservation procedure in the established amount, but not more than the double refinancing rate.

The obligation to fulfill the reserve requirements arises from the moment the license is obtained. After the credit institution's banking license is revoked, the required reserves are transferred to the account of the liquidation commission or the bankruptcy commissioner and used in the manner prescribed by federal laws and regulations of the Central Bank issued in accordance with them.

The Central Bank forms a reserve fund of the credit system of the Russian Federation from the required reserves, the funds of which are formed by reserving in it a certain share of the funds of third-party enterprises and organizations attracted by commercial banks, these funds are used as credit resources. In the vast majority, they include temporarily free funds on settlement, current accounts, as well as funds made in deposits and deposits by enterprises, organizations and citizens. Loans from other banks are not included in these attracted funds.

The amount of reserves - part of bank assets that any commercial bank is required to keep in the accounts of the Central Bank, largely determines the credit capabilities of a commercial bank. He can issue loans and thereby expand the money supply only if he has free reserves that exceed the minimum rate established by law. By increasing or decreasing official reserve requirements, the Central Bank can regulate the lending activity of banks and thereby control the money supply.

Regulation of minimum reserve requirements has a dual purpose:

· Firstly, it is designed to ensure a constant level of liquidity in commercial banks.

· Secondly, it is an important instrument of the Central Bank for regulating the money supply and the creditworthiness of commercial banks.

The Required Reserve Fund was created in order, if necessary, to enable commercial banks to fulfill their obligations to customers in a timely manner to return previously attracted funds, since part of these funds are deposited and not used by banks as credit resources.

The Central Bank, changing the norms of required reserves, influences the credit policy of commercial banks and the state of the money supply in circulation. Thus, a decrease in the required reserve ratio allows commercial banks to make fuller use of the credit resources they have generated, that is, to increase credit investments. However, it should be borne in mind that such a policy leads to an increase in the money supply in circulation and, in the context of a decline in production, causes inflationary processes.

If interest rates on required reserves are high, then the Central Bank limits the amount of money at the disposal of commercial banks. This reduces the creditworthiness of the latter and increases the interest on loans issued by them. Therefore, the reserved part of such deposits should exceed the amount of deposits with long periods of storage.

The level of development of the banking system and the state of the economy as a whole also affect the size of the required reserve ratios. In countries with a developed banking system, functioning in a stable economy, the norms of required reserves are set for a relatively long time.

Currency regulation

The need to regulate the exchange rate is due to the negative consequences of its sharp and unpredictable fluctuations. Maintaining the stability of the national currency is of great importance for ensuring the stability of prices and money circulation. The depreciation of the national currency leads to an increase in prices in the domestic market, i.e., to a decrease in the purchasing power of the national currency. In the context of a constant depreciation of the national currency, prices for goods in the domestic market are guided not so much by production costs as by the depreciation of the national currency. The depreciation of the exchange rate becomes a factor of inflation.

The Central Bank regulates the exchange rate through:

Conducting monetary policy;

Currency interventions;

Use of state reserves of international means of payment or foreign loans.

In practice, two main forms of monetary policy are usually used: discount and motto.

Discount (accounting) policy is carried out not only to change the conditions for refinancing domestic commercial banks, but sometimes aimed at regulating the exchange rate and balance of payments.

The Central Bank, buying or selling foreign currencies (mottoes), acts in the right direction on the change in the exchange rate of the national currency - this is the motto policy. Such operations are called "currency interventions". By purchasing at the expense of official gold and foreign exchange reserves (or through swap agreements) the national currency, it increases demand, and, consequently, its exchange rate. On the contrary, the sale of large batches of national currency by the Central Bank leads to a decrease in its exchange rate. The influence of the monetary policy of the Central Bank in the form of operations in the futures foreign exchange market is manifested in stimulating either the export or import of capital. The direction of the desired movement of capital depends on the priorities of the Central Bank's policy in a given economic situation, which can be expressed either in stimulating exports of goods (dumping policy) or in maintaining the exchange rate of the national currency against a foreign one.

Along with direct measures of foreign exchange regulation - discount and motto policies - and measures of direct foreign exchange regulation, many other legislative norms have a significant impact on the exchange rate. Among them, the following three groups of norms can be distinguished.

1. Norms of tax legislation:

Taxation of exchange rate differences;

Form of tax payments on foreign exchange transactions;

Taxation of operations on purchase and sale of foreign currency

2. Norms regulating the economic conditions of development:

Legislative regulation of payments in foreign currency on the territory of the country;

Requirements for enterprises wishing to use a foreign currency account and cash desk;

The rate of mandatory sale of foreign exchange earnings;

Interest rate on foreign currency loans written off to cost;

Regulation of public procurement (selection of suppliers - domestic or foreign).

3. Norms of banking legislation:

Required reserve ratios and the form of their transfer to the Central Bank. Many banks practice temporary restructuring of accounts before determining the amounts transferred as required reserves to the Central Bank, if the reserve ratio for foreign currency deposits is lower than for ruble deposits. Today she is single.

Requirements for banks wishing to conduct operations in foreign currency. The tightening of these requirements leads, on the one hand, to an increase in the professionalism of banks that maintain foreign currency accounts, and on the other

To change the cost of banking services for servicing foreign currency accounts. At the same time, two trends are manifested: a decrease in supply and limited competitiveness leads to an increase in the cost of banking services, and the concentration of operations in large banks reduces costs and, accordingly, the cost of services. This, in turn, affects the number of enterprises wishing to have foreign currency accounts. As a result, the demand in the foreign exchange market changes.

Targeting Money Supply Growth and Direct Quantitative Restrictions: Targeting Policies

Targeting, i.e., setting targets for the growth of the money supply in circulation, setting higher and lower limits for its increase for a certain period.

In fact, targeting is the establishment of direct restrictions on the growth of money supply. An important point influencing the effectiveness of the regulation of the dynamics of the money supply with the help of targets.

There is a direct relationship between the setting of benchmarks for the dynamics of the money supply and the effectiveness of other instruments of monetary regulation used by the Central Bank. Comparison of the dynamics of the money supply with the established benchmarks makes it possible to accurately determine the period during which the intervention of regulatory authorities is required, and the timeliness of taking measures increases their effectiveness.

The use by the Central Bank of target benchmarks for the dynamics of the money supply contributes to an increase in the efficiency and reliability of the functioning of the monetary regulation system.

Along with the economic methods by which the central bank regulates the activities of commercial banks, they can also use administrative methods of influence in this area. These include, for example, the use of quantitative credit restrictions. This method of credit regulation is a quantitative limitation of the amount of loans issued. In contrast to the methods of regulation discussed above, credit quota is a direct method of influencing the activities of banks. Also, credit restrictions lead to the fact that borrowing enterprises find themselves in an unequal position. Banks tend to lend primarily to their traditional customers, usually large enterprises. Small and medium-sized firms are the main victims of this policy.

It should be noted that, by using this policy to restrain banking activity and moderate growth in the money supply, the state contributes to a decrease in business activity. Therefore, the method of quantitative restrictions began to be used less actively than before, and in some countries it was completely canceled.

Also, the Central Bank may establish various standards (coefficients) that commercial banks are required to maintain at the required level. These include capital adequacy ratios for a commercial bank, balance sheet liquidity ratios, maximum risk per borrower ratios, and some supplementary ratios. These standards are mandatory for commercial banks. Also, the Central Bank may establish optional, so-called valuation standards, which are recommended for commercial banks to maintain at the proper level. If commercial banks violate banking legislation, rules for banking operations, or other serious shortcomings in their work, which leads to infringement of the rights of their shareholders, depositors, clients, the central bank can apply the most severe administrative measures to them, up to the liquidation of banks.

It is obvious that the use of administrative influence by the central bank in relation to commercial banks should not be of a systematic nature, but should be applied as an exclusively forced measure.

All the tools discussed above are indirect methods.

The law provides that the Central Bank may also apply direct quantitative restrictions (setting limits) on the refinancing of banks, the conduct of certain banking operations by credit institutions. But this happens in exceptional cases in order to conduct a unified state monetary policy only after consultations with the Government of the Russian Federation. The Central Bank may set growth targets for one or more indicators of the money supply, based on the main directions of the unified state monetary policy.

4. MAIN DIRECTIONS OF THE UNIFIED STATE MONETARY POLICY FOR 2008

4.1 Monetary policy principles for the medium term

In 2008, the principles of the unified state monetary policy, which have been formed in recent years, will be used, however, in the medium term, a change in the macroeconomic conditions for its implementation is expected, which will require a shift in emphasis from the programming of the money supply to the use of the interest rate and the transition from exchange rate management to a regime of free floating exchange rate.

External changes are mainly related to the uncertainty in the dynamics of world energy prices, which form the basis of Russian exports. In accordance with the forecast of socio-economic development in 2008 and especially in the next two years, a possible decrease in these prices will entail a reduction in the trade balance and a decrease in foreign exchange inflows. High prices for Russian exports have recently been a fundamental factor in the choice of a managed floating exchange rate regime, under which the Bank of Russia actively counteracted excessive ruble appreciation by intervening in the domestic foreign exchange market. Changes in the terms of trade will reduce the imbalance between supply and demand in the domestic foreign exchange market and reduce the need for the presence of the Bank of Russia on it. It is expected that by 2010 the increase in foreign exchange reserves may be significantly reduced and the increase in net foreign assets of the monetary authorities will no longer be the main source of money supply growth.

Under these conditions, in order to ensure that the volume of the money supply matches the demand for money, the Bank of Russia will need to intensify bank refinancing operations. At the same time, the possibilities for the influence of monetary policy on the dynamics of inflationary processes with the help of the interest rate will expand.

The most important internal condition that will have an impact on the conduct of monetary policy is a change in the principles of formation of the state budget. The main new points of the budget strategy are:

Planning and approval of the federal budget for a three-year period in the form of a law;

Separation of revenues into oil and gas and non-oil and gas revenues with determination of the size of the oil and gas transfer directed to federal budget expenditures as part of the transformation of the Stabilization Fund of the Russian Federation into the Reserve Fund and the Fund for Future Generations.

The transition to a “rolling” three-year budget formation horizon will contribute to a more even spending of state budget funds throughout the year, as a result of which the dependence of the dynamics of the money supply on seasonal fluctuations in the movement of budget funds will decrease.

The implementation of the interest rate policy by narrowing the corridor of interest rates on refinancing operations of credit institutions and absorbing their free funds makes it possible to influence the change in the limits of fluctuations in money market rates. Reducing the volatility of short-term interest rates in the interbank market and the formation of a long-term segment of the money market are considered by the Bank of Russia to be among the main objectives of its operations on the open market.

At present, the value of money in the economy is formed in conditions of a high level of liquidity, which is formed as a result of the receipt of large volumes of foreign exchange earnings and active foreign exchange interventions of the Bank of Russia. As the volume of interventions by the Bank of Russia in the domestic foreign exchange market declines, interest rates on money market interest rates will be increasingly influenced by rates on market-based bank refinancing instruments (direct REPO operations). Lowering the refinancing rate in line with lower inflation rates will help maintain a stable value of the real interest rate and lower inflationary expectations of market participants. At the same time, the level of rates on liquidity binding transactions will be affected by the differential of domestic and foreign interest rates.

In order to maintain macroeconomic stability, the Bank of Russia will continue to apply and develop elements of the inflation targeting regime, the most important of which are the priority of the goal of reducing inflation over other goals and the medium-term nature of its establishment. In order to fully introduce inflation targeting, the Bank of Russia will need to switch to a freely floating exchange rate regime, as well as implement measures aimed at using the interest rate as the main monetary policy instrument that performs a signaling function and affects the monetary conditions for the functioning of the economy.

One of the key conditions for the successful application of the inflation targeting regime is the ability of the central bank to influence the inflation expectations of economic agents. Therefore, the Bank of Russia sees its task as increasing the openness and transparency of its actions and increasing the degree of public confidence in the policy pursued. The publication of analytical materials and information on developments in the economy, the monetary sphere and the banking system is aimed at explaining to the public the goals and measures of the policy pursued by the Bank of Russia.

When making monetary policy decisions, the Bank of Russia will rely on a wide range of macroeconomic and financial indicators, as well as on monetary aggregates that characterize current monetary conditions and are indicators of future inflationary pressure.

The effectiveness of monetary policy implementation is determined by the Bank of Russia's ability to manage banking sector liquidity, which, in turn, is closely related to the state of the domestic financial market and payment system. The actions of the Bank of Russia will be aimed at increasing the availability of refinancing instruments for credit institutions, reducing transaction costs and developing market infrastructure, and building a real-time gross settlement system .

4.2 Goals and Instruments of Monetary Policy in 2008

In 2008, the Bank of Russia will continue to work on improving the system of monetary policy instruments and their operational use to ensure a stable state of the monetary sphere under various scenarios of the country's socioeconomic development.

Priority will be given to the consistent activation of the interest rate policy and the increasing importance of the interest rate channel in the transmission mechanism of monetary policy as the necessary economic prerequisites are formed. The key factors include: a significant decrease in the positive balance of payments predicted in the medium term, a corresponding decrease in the participation of the Bank of Russia in operations in the domestic foreign exchange market. The consequence of this should be a slowdown in the dynamics of the money supply. Under these conditions, one can expect an increase in the influence of rates on Bank of Russia operations on interest rates in the Russian economy.

Consistent narrowing of the corridor of interest rates on Bank of Russia operations in the money market in 2008 will remain a strategic direction of interest rate policy. In the context of the lifting of restrictions on the movement of capital, the increase in the lower boundary of the corridor will be carried out taking into account the risk of a large-scale inflow of foreign capital.

The Bank of Russia will use tools to absorb free bank liquidity, primarily regular operations with OBR and deposit operations. At the same time, in 2008 the main sterilization channel (in terms of the amount of absorbed funds) will continue to be the use of the budgetary mechanism within the framework of the transition to the formation of the Reserve Fund and the Future Generations Fund planned from February 1, 2008.

Market instruments used on an auction basis (auctions for the sale of OBRs and deposit auctions) will play a leading role in tying up free cash resources by the Bank of Russia. The transition to the issuance of short-term OBRs will help simplify the use of this sterilization tool and, accordingly, increase demand for it from money market participants. At the same time, in 2008 the Bank of Russia will continue to use standing instruments that ensure short-term liquidity tying (deposit operations at fixed rates on standard terms).

In addition, if long-term absorption of liquidity is required, the Bank of Russia intends to sell government securities from its own portfolio (without a repurchase obligation). In 2008, it is planned to consider changing the structure of the government securities portfolio owned by the Bank of Russia by exchanging federal loan bonds (OFZ) with non-market characteristics for more liquid issues, which will increase the efficiency of using this instrument.

Mandatory reserve requirements will continue to be used by the Bank of Russia as a direct tool for regulating the liquidity of the banking sector. In the event of a significant increase in banking liquidity, in particular as a result of an intensive inflow of short-term foreign capital into the Russian economy, when the use of other instruments to absorb it cannot produce the desired effect, the Bank of Russia admits the possibility of raising the required reserve ratios. At the same time, in order to enable credit institutions to efficiently manage their own liquidity, the Bank of Russia may continue to gradually increase the required reserve averaging ratio.

The Bank of Russia takes into account the possibility of changes in the liquidity level of the banking sector associated with external shocks, including the risks of a significant reduction in the level of liquidity in the face of continued uncertainty regarding the direction of cross-border capital flows, as well as changes in world prices for Russian exports.

In the event of a decrease in the level of bank liquidity, including a short-term one, the Bank of Russia is ready to intensify the use of instruments for providing funds to credit institutions on auction and fixed terms. To this end, direct REPO auctions, Lombard credit auctions, and the use of standing instruments (Lombard loans provided at fixed interest rates, currency swap transactions) will continue. In order to ensure uninterrupted settlements, credit institutions will be provided with intraday and overnight loans from the Bank of Russia on a daily basis.

In order to improve the efficiency of credit institutions' refinancing operations, the Bank of Russia will continue to work in 2008 to create a unified refinancing mechanism. At the same time, the main task of the Bank of Russia is to create a system that will provide any financially stable credit institution with the opportunity to receive intraday loans, overnight loans and loans for up to 1 year against any type of collateral included in the “single pool” of collateral.

The planned measures are aimed at ensuring prompt access of credit institutions to a sufficient amount of funds provided through the operations of the Bank of Russia.

In 2008, work will continue to include in the Lombard List of the Bank of Russia securities that meet the requirements of the Bank of Russia, as well as to expand the range of counterparties of the Bank of Russia for refinancing operations and the number of credited accounts of credit institutions opened in all territorial branches of the Bank of Russia.

In connection with the planned expansion of the composition of property accepted as collateral for Bank of Russia loans, during 2008 the Bank of Russia will develop a mechanism for attracting specialized organizations, including the Deposit Insurance Agency, to organize public auctions for the sale of property accepted as collateral for Bank loans Russia and not circulating in Russia on the organized market, in case of non-repayment by credit institutions - borrowers of loans from the Bank of Russia.

The development of the repo market with a central counterparty will improve the efficiency of the Bank of Russia's instruments for providing and withdrawing liquidity. Due to the anonymity of transactions and the absence of counterparty risk, this type of transaction makes it possible to overcome the segmentation of the interbank market and contribute to a more efficient flow of liquidity within the banking system.

Summing up the work done, it should be noted once again that monetary policy is one of the most powerful tools of economic policy at the disposal of the state.

At present, the activities of the Central Bank of Russia are of great importance, since the stability and further growth of the economic potential of the country, individual sectors of the economy, as well as strengthening positions in the international market depend on its effective functioning and correctly chosen methods by which it carries out its activities.

Based on the results of the work carried out, the following conclusions were made:

1. The goals, objectives and functions of the Central Bank of Russia correspond to its essence. All those goals and tasks that stand before it, the powers granted to it, are ultimately determined by the fact that the Central Bank acts as a nationwide center designed to regulate the circulation of money in the country.

2. The role of the Central Bank, as a subject of monetary policy, in the monetary regulation of the economy lies in the fact that the Bank of Russia, in accordance with its inherent functions, carries out monetary policy to directly regulate the country's economic growth, increase production efficiency, ensure employment of the population, etc.

Monetary policy, originally intended for market regulation, having many goals and a variety of instruments, has increasingly become oriented towards improving the financial environment: stability of exchange rates and prices of financial assets; control over the risks of financial intermediaries; creating the conditions necessary to improve the efficiency of the credit and financial system. In pursuit of these goals, the Central Bank changed the methods of monetary policy. Regulatory influence with the use of a variety of instruments was replaced by the use of several indirect instruments of “fine tuning” of the money market, which make it possible to quickly respond to market fluctuations.

With such tools as revision of the reserve ratio, change in the discount rate and open market operations, the Central Bank can have a decisive influence on the money supply, and through it - on the real national product, employment and price index.

Monetary policy largely determines exchange rates, thereby affecting the efficiency of foreign trade operations for exports and imports. It can be used not only to change the main domestic macroeconomic variables, but also to manage the foreign trade balance.

In conclusion, I would like to note that the role of the Central Bank in the current conditions of development and stabilization of the economy is increasing day by day.

Bibliography

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2. Banks and banking. / Ed. I.T. Balabanova. - St. Petersburg: Peter, 2001

3. Isaeva E. B. Monetary policy in Russia: opportunities and results // Money and Credit 1993 No. 9

4. Obukhov N. P. Credit market and monetary policy // Finance. 1995. No. 2

5. Official website of the Central Bank of the Russian Federation: http://www.cbr.ru

6. Collection of Laws of the Russian Federation. - M .: Publishing house "EKSMO", 2006

7. Semenyuta O.G. Fundamentals of banking

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10. http://www.akdi.ru - Internet server Agency for Consultations and Business Information "AKDI Economics and Life"

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