<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper studies the international transmission of the euro area´s monetary policy and financial stress to Russia. The results show that financial stress in the euro area damages Russian economic activity and stock prices, but not its trade balance. The contractionary euro area monetary policy shock decreases Russian GDP, leads to real appreciation of the euro against the Russian rouble, damages Russian stock prices, but does not significantly affect the trade balance between countries. We also found that the Central Bank of the Russian Federation adjusts to monetary policy shocks in the euro area.</p>
</abstract>

This paper studies the international transmission of the euro area´s monetary policy and financial stress to Russia. The results show that financial stress in the euro area damages Russian economic activity and stock prices, but not its trade balance. The contractionary euro area monetary policy shock decreases Russian GDP, leads to real appreciation of the euro against the Russian rouble, damages Russian stock prices, but does not significantly affect the trade balance between countries. We also found that the Central Bank of the Russian Federation adjusts to monetary policy shocks in the euro area.

International Transmission of Conventional and Unconventional Monetary Policy and Financial Stress Shocks from the Euro Area to Russia

International Laboratory for Macroeconomic Analysis

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper studies the international transmission of the euro area´s monetary policy and financial stress to Russia. The results show that financial stress in...

International Transmission of Conventional and Unconventional Monetary Policy and Financial Stress Shocks from the Euro Area to Russia

Published Online: Jan 18, 2022

Page range: 227 - 247

Received: Jun 03, 2020

Accepted: Sep 28, 2020

DOI: https://doi.org/10.2478/jcbtp-2022-0010

Keywords
conventional monetary policy, unconventional monetary policy, financial stress, Russia, international transmission

© 2022 Silvo Dajčman et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

International Transmission of Conventional and Unconventional Monetary Policy and Financial Stress Shocks from the Euro Area to Russia

Published Online: Jan 18, 2022

Page range: 227 - 247

Received: Jun 03, 2020

Accepted: Sep 28, 2020

DOI: https://doi.org/10.2478/jcbtp-2022-0010

Keywordsconventional monetary policy, unconventional monetary policy, financial stress, Russia, international transmission

© 2022 Silvo Dajčman et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
conventional monetary policy, unconventional monetary policy, financial stress, Russia, international transmission