Monetary Policy of Central Banks of the BRICS Countries in the Global Financial System

Abstract 
The article compares the current situation in the central banks of the BRICS countries and changes in their main characteristics as well as  the results of their monetary policy after the  2007–2009 financial crisis. Significance of main modern monetary policy instruments is evaluated by means of a modified model based on the Taylor rule. The influence of developed countries’ central banks on the monetary policy of the BRICS countries and the BRICS countries’ central banks on each other is studied using a vector error correction model. According to our analysis, not all the countries in the selection influence each other. The monetary policy of the BRICS countries’ central banks correlates to that of developed countries’ central banks, but there is a lag in making decisions and the instruments used are different. The US Federal Reserve system has a more significant effect on Russia, India and South Africa, while the monetary instruments in China are very much under the influence of the Bank of Japan. All the processes considered result from globalization in the field of macroeconomic financial policy, which affects the national monetary policies in different ways. 
 
Keywords 
globalization, central bank, monetary policy, BRICS countries 
 


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