The Analysis of Money Supply Endogeneity in Russia

The authors provide a comparative analysis of money supply in Russia before and after Global financial crisis with investigation of its correspondence to the Post-Keynesian endogenous money view. Our results show that during the pre-crisis period bank credit was determined by volume of liquidity generated as a result of central bank's interventions. However there is no causality between money supply and bank credit after 2008 financial crisis. This finding may be explained by the change in the monetary policy stance. The transformation of central bank role should be considered in designing the system of financial regulation and the monetary policy framework.