The Chairman of the Central Bank of the Russian Federation Elvira Nabiullina
The Central Bank of the Russian Federation launched a series of videos explaining how to construct the economy. “The economic terms are firmly established in everyday life, but still sometimes they remain misunderstood. If you’ve always wanted to understand but didn’t know how, you will help a series of short videos “understand the economy”, — motivates the Bank of Russia running series on his page in Facebook and YouTube channel. All seven videos planned, they will participate as the experts of the Central Bank and outside.
In the first three-minute video, the Governor of the Bank of Russia Elvira Nabiullina says about how monetary policy, “the actions of the state influencing the amount of money and the conditions of their treatment.” Elvira explains that these actions are aimed at maintaining price stability, employment and growth in the real sector of the economy.
The tool set is limited, the Central Bank, said in the video. “Therefore, we need to determine the priorities”, — said Nabiullina and emphasizes that today the main goal of monetary policy- low inflation as a necessary condition for sustainable economic development. The Chairman of the Central Bank explains that in the context of high inflation, agents in the economy do not build long-term plans: the business is afraid to invest in development, citizens — to preserve. That is why the Central Bank follows the inflation targeting regime, Central banks in many developed countries such as the UK and other Eurozone countries, Australia, Canada, Korea.
Nabiullina says Central Bank affects inflation by changing the key rate, which specifies the cost of money for banks, and thus determines interest rates on loans and deposits, which they set. These rates affect the decisions of companies and citizens to borrow or to put money on Deposit — how it works the transmission mechanism of monetary policy. “The effect of the key rate is not immediate, therefore, setting the key rate, we are guided not only by the current state of the economy, but also our forecasts, primarily our forecast for inflation,” she says. According to the forecast, at the end of 2016 inflation will be equal to 6-7%, the video. 4% — stated Central Bank inflation target for 2017.
CBR is not the first Central Bank, which runs the initiative. For example, the U.S. Federal reserve has a separate educational website aimed at increasing financial literacy. It contains interactive courses, materials for teachers of Economics, historical background. In addition, in 2012, at that time, the fed Chairman, Ben Bernanke, gave a few lectures about the Federal Reserve System and its role in the economy as part of the course for students of the business school of George Washington University. Section with video tutorials, games and other materials have the Bank of England.
On may 26, the Central Bank of Russia registered the official pages in social networks Facebook and Twitter. At the moment of writing of article on page of the Central Bank on two resources were signed 1.6 and 1.2 thousand, respectively. “Here we will publish latest news and useful information that will help you to navigate freely in the world of Finance (you may even be pictures),” the regulator wrote in the first post on Facebook.