A brief analysis of monetary transmission in modern Russia

Subject. The article discusses depreciation of the monetary policy transmission mechanism in Russia in the context of the dynamics of financial markets and the Bank of Russia instruments. Objectives. The study aims to determine the parameters of monetary transmission in modern Russia. Methods. The study rests on general scientific methods, like analysis and synthesis of data, and special economic and mathematical methods, primarily, correlation and regression analysis. Results. The paper showed changes in the funds of credit institutions in deposit accounts with the Bank of Russia and in the "Overnight Standing Deposits" to "One-Week Deposit Auctions" ratio. It revealed a critical reduction of the maximum amplitude of the growth rate of the federal bond market, with its overall growth. Furthermore, it unveiled loss of dominance of debt securities issued in the domestic market at market value plus quoted shares of Russian issuers traded in the domestic market, over the money supply. Conclusions. The revealed parameters of monetary transmission indicate to the expert community the extent of deterioration of the monetary policy transmission mechanism.