Nominal Anchors in the CIS

Author/Editor: Keller, Peter ; Richardson, Thomas J.
Publication Date: September 01, 2003
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Monetary policy has become increasingly important in the countries of the Commonwealth of Independent States (CIS) as fiscal adjustment and structural reforms have taken root. Inflation has been brought down to relatively low levels in almost all of these countries, raising the question of what should be the appropriate nominal anchor at this stage. Formally, almost all CIS countries have floating exchange rate regimes, yet in practice they manage their exchange rates very heavily, perhaps because of high levels of dollarization (i.e., they suffer from "fear of floating"). This paper explores the issues underlying the choice of a nominal anchor in CIS countries and seeks to assess whether the present mixed regime will prove durable.
Series: Working Paper No. 03/179
Subject(s): Monetary policy | Turkmenistan | Belarus | Azerbaijan | Kazakhstan | Kyrgyz Republic | Russian Federation | Ukraine | Uzbekistan | Armenia | Georgia | Moldova | Tajikistan | Exchange rates

Author's Keyword(s): Monetary Policy | exchange rates | nominal anchors
Publication Date: September 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1792003 Pages: 42
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