Monetary Stabilization Policy in the Coronacrisis

Saint-Petersburg State University, Faculty of Economics, Universitetskaya emb. 7-9, Saint-Petersburg, Russia

^* Corresponding author: t.kotsofana@spbu.ru

Abstract

Research background: In 2020, all the world's economies faced a new, special phenomenon – the coronacrisis caused by the pandemic, and with the fall of most economic indicators. In the current conditions, it is extremely important to build a competent monetary policy in order to soften the "blows" caused by the global recession for national economies.

Purpose of the article: The main purpose of the presented article is the analysis of measures to stimulate the economy using monetary policy instruments in the conditions of the coronacrisis.

Methods: To conduct the study, we used official statistics data, on the basis of which an econometric model was built, which allowed us to determine the forecast values for inflation, taking into account the impact of monetary and non-monetary factors.

Findings & Value added: The econometric analysis show the high importance of non-monetary factors of inflation. This makes it difficult to assess the monetary policy, since Central banks are able to influence non-monetary factors only indirectly. The paper notes the influence of the refinancing rate on loans to the real sector of the economy, since the stabilization monetary policy should be primarily aimed at maintaining economic growth. The correlation field of the relationship between the index of rigidity of restrictions developed by the University of Oxford and loans to small and medium-sized businesses is constructed. It is noted that with the reduction of administrative restrictions, the volume of loans granted to small and medium-sized businesses increases.