One of the most important aims of monetary policy of the Bank of Russia is to reduce CPI inflation under simultaneous … usage of additional instrument, it is unclear whether Central bank can influence inflation processes at all. The work … inquires into how inflation is influenced by credit aggregates, oil prices and exchange rate as the major factors limiting …

pulling prices directly. It is also established that real interest rates based on realised inflation have little co …-variation with activity and it is suggested to use a real interest rate based on filtered inflation instead. Rolling 10-year sample …