The Russian Financial Crisis and its Consequences for Central Asia

Working Papers in full text
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All

Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile

Author/Editor:

Pastor, Gonzalo C. | Damjanovic, Tatiana

Authorized for Distribution:

October 1, 2001

Electronic Access:

Free Full Text (PDF file size is 1,986KB)
Use the free Adobe Acrobat Reader to view this PDF file.

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: This paper reviews the economic conditions in central Asia at the time of the Russian financial crisis of August 1998; the channels by which the crisis was transmitted to the central Asian region; and the policy responses. The paper concludes that, while real exchange rates of central Asian national currencies vis-à-vis the Russian ruble have returned to their pre-crisis levels following the nominal devaluations that ensued, other indicators of external competitiveness, such as unit labor cost indices, suggest the need for further surveillance in this area. Also, it is not yet clear if full exchange rate flexibility has been established in central Asia despite the protracted and costly exits from the nominal exchange rates in place at the time of the crisis. Finally, the debt-to-GDP ratios in central Asia, which grew rapidly between 1998 and 1999 in the context of large exchange rate adjustments, remain a challenge for the Tajik and Kyrgyz authorities, in particular.

Series:

Working Paper No. 01/169

Subject(s):

Author's keyword(s):

Russian financial crisis | exchange rate policy | external debt issues

English

Published:	October 1, 2001
ISBN/ISSN:	1934-7073	Format:	Paper
Stock No:	WPIEA1692001	Pages:	44
Price:	US$15.00


Price Delivery Note:	Prepayment required for individual copies. An annual subscription is $375.00 a year. It includes 12 monthly shipments and priority mail delivery. The Stock No. for the subscription is WPEA.
Please address any questions about this title to publications@imf.org.