The Analysis Of The Monetary Policy Of The Central Bank Of The Russian Federation During Financial Crisis 2014-2016

The financial crisis in Russia in 2014–2016 was the result of the collapse of the Russian ruble beginning in the second half of 2014.A decline in confidence in the Russian economy caused investors to sell off their Russian assets,which led to a decline in the value of the Russian ruble and sparked fears of a Russian financial crisis.The lack of confidence in the Russian economy stemmed from at least two major sources.The first is the fall in the price of oil in 2014.Crude oil,a major export of Russia,declined in price by nearly 50% between its yearly high in June 2014 and 16 December 2014.The second is the result of international economic sanctions imposed on Russia following Russia's annexation of Crimea and the Russian military intervention in Ukraine.Russia during the period of 2014-2016,by the double whammy of Ukraine's crisis and the European Union economic sanctions its domestic economic development is affected by the serious,in which the bank actively use monetary policy tools of macroeconomic adjustment,in order to stabilize the economy development.We are conducts an empirical analysis of the monetary policy implementation effect of the central bank ofthe Russian Federation during the domestic economic crisis in Russia by constructing vector autoregressive model(VAR).Vector autoregressive model(VAR)is often used to analyze the dynamic impact of correlated time series data and random disturbance term on economic variables.So-called impulse response is given a standard unit of random perturbation terms of impact,on the impact of other variables in the system,or other system variables on the impact of the standard unit.In an economic system,the impact on a given variable not only affects the variable itself,but also affects other variables in the macro-economic system.Therefore,the impulse response function can accurately describe the dynamic correlation between variables in the economic system.The monetary policy effect of the central bank during the crisis is analyzed in detail by means of empirical analysis and Russian macroeconomic data.