Basic Directions of a Unified State Monetary and Credit Policy for 1998

Abstract

The basic directions of a unified state monetary and credit policy, developed in accordance with the federal law "The Central Bank of the Russian Federation (Bank of Russia)," define the concrete tasks to be resolved by the Bank of Russia in the coming year. The main function of the country's central bank, according to the Constitution of the Russian Federation (Article 75, no. 2) and the federal law "The Central Bank of the Russian Federation (Bank of Russia)" (Article 4), is to protect and ensure the stability of the national monetary unit—the Russian ruble. This document formulates the goals of monetary and credit policy and defines the principal measures aimed at maintaining stable domestic prices and currency exchange rates of the Russian ruble, as well as quantitative guidelines for the principal macroeconomic ratios. All of this makes the policies of the Bank of Russia more transparent and increases confidence in the nation's economic policies, which is an important condition for the formation of sustained low inflationary expectations in society.