Monetary Transmission Mechanisms in Belarus

 
Author/Editor: Horváth, Balázs ; Maino, Rodolfo
 
Publication Date: November 01, 2006
 
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Summary: We explore monetary policy transmission by estimating VAR impulse response functions to illustrate the Belarusian economy's response to unexpected changes in policy and exogenous variables. We find a significant exchange rate pass-through to prices, and interest rate policy following, rather than leading, financial market developments. Our estimated monetary policy reaction function shows the central bank striking a balance between real exchange rate stability and containing inflation. We discuss dollarization, administrative interventions, and other features complicating monetary policy transmission, review specific constraints and vulnerabilities, and conclude with observations on possible measures that could raise the effectiveness of monetary policy in Belarus.
 
Series: Working Paper No. 06/246
Subject(s): Monetary policy | Belarus | Inflation | Prices | Interest rate policy | Dollarization | Economic models

Author's Keyword(s): Monetary policy | inflation | transmission mechanisms | dollarization
 
English
Publication Date: November 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006246 Pages: 22
Price:
US$18.00 (Academic Rate:
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