The Need to Change the Priorities of Monetary Policy

The sanctions standoff, the growing global crisis, and the pandemic have exacerbated the issues of stimulating economic growth and investment activity. This study is based on data from the IMF, Rosstat, the Bank of Russia, and the Rand Corporation. This study is based on the publications of a number of foreign and Russian scientists. It analyzes the dynamics and structure of investments in fixed assets, GDP, money supply (monetary aggregate M2), the rate of inflation, and the key interest rate. In the course of the analysis, the dynamics of GDP growth, money supply, and the monetization coefficient of the leading economies, including Russia, were analyzed. In the course of the study, the regularities, features and limits of monetization were established. The results of the study can be used to further substantiate the necessity and expediency of the monetary policy vector, as well as to develop tools for channeling the money supply. The study revealed that the sanctions regime is formed by noticeable problems with attracting foreign investment. The latter leads to a decline in investment activity and stagnation in the economy. In this situation, it is necessary to change the priorities of monetary policy.