IMF Working Papers

Uzbekistan's Transition to Inflation Targeting

By Moayad Al Rasasi, Ezequiel Cabezon

November 18, 2022

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Moayad Al Rasasi, and Ezequiel Cabezon. Uzbekistan's Transition to Inflation Targeting, (USA: International Monetary Fund, 2022) accessed October 6, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Uzbekistan has significantly improved its monetary policy framework during 2017-21. Nevertheless, the transition to inflation targeting is challenging as the country is going through a period of deep structural reforms. Therefore, the Central Bank of Uzbekistan (CBU) will have to monitor structural reforms and calibrate monetary policy accordingly. This paper identifies institutional and structural gaps, and assesses the effectiveness of monetary policy transmission. Institutional gaps are assessed using institutional indexes while transmission is assessed using VARs. It concludes that in the coming years, reforms will need to continue, to further improve the CBU’s governance and independence, develop financial markets, but most of all to reduce the still large footprint of the state in the financial sector as well as in the overall economy.

Keywords: Inflation targeting, Monetary policy, Uzbekistan

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/229

  • Stock No:

    WPIEA2022229

  • ISBN:

    9798400224584

  • ISSN:

    1018-5941