IMF Working Papers

Monetary Policy in Transition: The Case of Mongolia

By Torsten M Sloek

January 1, 2000

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Torsten M Sloek. Monetary Policy in Transition: The Case of Mongolia, (USA: International Monetary Fund, 2000) accessed November 8, 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 analyzes monetary policy in transition. It examines the dynamics of monetary policy in Mongolia using granger-causality tests for monetary variables and inflation. The paper also analyzes money demand using data from 22 Mongolian regions during 1993-1998. The analyses confirm the key role of monetary policy in stabilization and reveal that even in a transition economy as rudimentary as Mongolia, a stable money demand and a predictable relationship between inflation and monetary variables do exist. Hence market-based monetary policy is effective. In addition, the analysis points to a difference between transition and industrial economies in the elasticity of money demand with respect to activity, reflecting the larger role for transactions demand for money.

Subject: Demand for money, Exchange rates, Foreign exchange, Inflation, Monetary base, Money, National accounts, Personal income, Prices

Keywords: Baltics, Central and Eastern Europe, Demand for money, Eastern Europe, Europe, Exchange rates, Global, Income elasticity, Inflation, Inflation process, Interest rate, Monetary base, Money demand, Money demand analysis, Money demand elasticities in Mongolia, Money demand elasticity, Money demand estimation, Money demand relationship, Money supply, Mongolia, Personal income, Role monetary policy, Transition economies, Transition economy, Way monetary policy function, WP

Publication Details

  • Pages:

    19

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2000/021

  • Stock No:

    WPIEA0212000

  • ISBN:

    9781451843903

  • ISSN:

    1018-5941

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