{
  "title": "Uzbekistan's Transition to Inflation Targeting",
  "publication": "IMF Working Papers, November 18, 2022",
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  "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.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Uzbekistan has significantly improved its monetary policy framework during 2017-21.\n- The transition to inflation targeting is challenging because the country is going through a period of deep structural reforms.\n- The Central Bank of Uzbekistan (CBU) will have to monitor structural reforms and calibrate monetary policy accordingly."
    },
    {
      "heading": "Research focus and methods",
      "content": "- Identifies institutional and structural gaps and assesses the effectiveness of monetary policy transmission.\n- Institutional gaps are assessed using institutional indexes.\n- Transmission is assessed using VARs."
    },
    {
      "heading": "Key findings",
      "content": "- Reforms during 2017-21 materially strengthened the monetary policy framework.\n- Structural reforms underway create additional challenges for adopting inflation targeting.\n- The effectiveness of monetary policy transmission has been evaluated but remains constrained by institutional and structural factors.\n- The paper concludes that in the coming years, reforms will need to continue to:\n  - further improve the CBU’s governance and independence,\n  - develop financial markets,\n  - reduce the still large footprint of the state in the financial sector as well as in the overall economy."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Continue reforms to strengthen CBU governance and independence.\n- Develop financial markets to support transmission under an inflation-targeting framework.\n- Reduce the large state footprint in the financial sector and the broader economy to improve policy effectiveness.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745"
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    "Authors: Moayad Al Rasasi, Ezequiel Cabezon",
    "Published: November 18, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400224584.001",
    "Uzbekistan has significantly improved its monetary policy framework during 2017-21.",
    "The transition to inflation targeting is challenging because the country is going through a period of deep structural reforms.",
    "The Central Bank of Uzbekistan (CBU) will have to monitor structural reforms and calibrate monetary policy accordingly.",
    "Identifies institutional and structural gaps and assesses the effectiveness of monetary policy transmission.",
    "Institutional gaps are assessed using institutional indexes.",
    "Transmission is assessed using VARs.",
    "Reforms during 2017-21 materially strengthened the monetary policy framework.",
    "Structural reforms underway create additional challenges for adopting inflation targeting.",
    "The effectiveness of monetary policy transmission has been evaluated but remains constrained by institutional and structural factors.",
    "The paper concludes that in the coming years, reforms will need to continue to:",
    "Continue reforms to strengthen CBU governance and independence.",
    "Develop financial markets to support transmission under an inflation-targeting framework.",
    "Reduce the large state footprint in the financial sector and the broader economy to improve policy effectiveness.",
    "**Working Paper**"
  ],
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