Econometric Modelling of Inflation Rate in the Russian Federation
The article presents an econometric model explaining the inflation rate in the Russian Federation in terms of the Bank of Russia key rate and the amount of monetary base as a special monetary market figure. In the course of the econometric investigation, model performance and adequacy of forecast were confirmed. Therefore, the model can be used to determine and predict the inflation rate. The constructed model illustrates that if money supply increase by 1 billion rubles, the inflation rate will decline by 0,001%. At the same time, the Bank of Russia key rate growth of 1% leads to the inflation reduction by 1,91%.