Bank of Russia's Taylor Rule Successfully Stabilizes Inflation During Targeting Period.
The Bank of Russia uses the Taylor rule to stabilize inflation during the period of inflation targeting. By analyzing the systematic and discretionary reactions of the regulator, it was found that the Bank of Russia actively stabilizes inflation by adjusting interest rates in response to deviations from the target. Monetary policy shocks lead to a decrease in inflation components of consumer and industrial goods, showing the effectiveness of the Taylor rule in Russia.