Conducting Monetary and Credit Policy in Countries of the Former Soviet Union: Some Issues and Options

March 1, 1993

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Hugh Bredenkamp. Conducting Monetary and Credit Policy in Countries of the Former Soviet Union: Some Issues and Options, (USA: International Monetary Fund, 1993) accessed September 19, 2024

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 surveys some of the principal monetary policy issues facing countries of the former U.S.S.R. The emphasis is on the immediate problem of imposing financial discipline in these economies, to bring down inflation quickly and decisively. Possible options for the essential nominal anchor are considered, together with the problems of selecting appropriate targets and instruments for monetary policy needed to make that anchor effective. It is argued that, if the stabilization effort is to be sustained, discipline must be imposed at the micro- as well as the macro-level, and the paper suggests a second-best approach to the allocation of credit in the absence of well-functioning credit markets.

Subject: Banking, Conventional peg, Credit, Currencies, Exchange rates, Foreign exchange, Monetary base, Money

Keywords: Bad debt, Balance of payments, Bank liability, Bank refinancing, Base money, Clean float, Commercial bank, Conventional peg, Credit, Credit market, Currencies, Currency board, Currency board option, Eastern Europe, Excess reserves, Exchange rate peg, Exchange rates, Foreign currency, FSU country, Lending bank, Monetary base, Money multiplier, Single currency, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/023
Stock No:

WPIEA0231993
ISBN:

9781451921076
ISSN:

1018-5941

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