Monetary Policy Frameworks and Communication in the Caucasus and Central Asia

IMF Working Papers, December 8, 2023

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Canonical URL: Monetary Policy Frameworks and Communication in the Caucasus and Central Asia

Authors: Omer Faruk Akbal, Klakow Akepanidtaworn, Ezequiel Cabezon, Mariarosaria Comunale, . Marina Conesa Martinez, Filiz D Unsal
Published: December 8, 2023
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798400260742.001

Central banks in Caucasus and Central Asia (CCA) have been enhancing their monetary policy frameworks in the last decade and are at different stages of the transition to a type of inflation targeting regimes.
The paper documents progress and the current state of CCA monetary policy frameworks, utilizing the IAPOC index developed by Unsal and others (2022) covering Independence and Accountability, Policy and Operational Strategy, and Communications.
The analysis draws from central banks’ laws and websites and includes an analysis of press releases from CCA central banks to evaluate their features, content, and tones.

CCA central banks show progress toward inflation-targeting-type frameworks but remain at different stages of transition across countries.
Communications have seen some recent advancements, but further improvements are needed.
Independence and Accountability are identified as areas requiring additional improvements.

Utilizes the IAPOC index (Unsal and others (2022)) as the principal evaluation framework, with its three pillars: Independence and Accountability; Policy and Operational Strategy; Communications.
Draws on central bank laws and websites for institutional and legal analysis.
Conducts an analysis of press releases from CCA central banks to assess features, content, and tones.