Submitted:
04 March 2020
Posted:
05 March 2020
Read the latest preprint version here
Abstract
The paper gives an explanation of the dynamics of the money masses in Russia through cross-border flows of rubles and (foreign) currency and the creation of deposits by commercial banks. Volumes of flows and deposits in turn depend on changes in the currency/ruble exchange rate. It was found that the growth/fall of the USD rate by 1 RUB for the month, for the same month decreases/increases: currency outflow abroad by 0.111 billion USD and creation of ruble deposits and the inflow of rubles from outside by 0.133 billion USD.
Keywords:
broad money supply
; currency outflow
; money creation
; exchange rate
; Kalman filter
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