Political functions of the Вank of Russia

Abstract

This paper examines the political role that the Bank of Russia plays in its activities and its impact on the economy of the country and the welfare of the population. The purpose of the paper is to analyze the political functions of the Bank of Russia with a focus on its key rate, both domestically and externally, and to consider domestic and foreign policy cases related to this issue. An analytical and empirical approach is used to achieve this goal. Academic research, theoretical models and practical examples related to the policy of the Bank of Russia and its impact on the economy are analyzed. The experience of other countries, especially those that apply key rate instruments in their policies, is also considered. The study reveals that the Bank of Russia key rate has an important political importance both inside and outside the country. As a domestic policy instrument, the rate is used as a tool to achieve domestic policy goals, such as controlling inflation, stimulating economic growth, and supporting financial stability. As a foreign policy tool, the rate is a means of soft power and political influence, especially in the context of global financial markets, where global actors are guided by the actions of the Bank of Russia. The results of the study emphasize the importance of understanding the Bank of Russia's political functions and its impact on the economy and public welfare. This is essential for developing effective economic policy and making informed monetary policy decisions. Thus, this article contributes to the expansion of knowledge about the Bank of Russia's political functions and its role in economic development. It offers an analytical view of the key rate and explores domestic and foreign policy cases in order to cover more fully the issues related to the policy of the Bank of Russia and its impact on various aspects of public life.