## Uzbekistan's Transition to Inflation Targeting

_IMF Working Papers, November 18, 2022_

## Source details

**Canonical URL:** [Uzbekistan's Transition to Inflation Targeting](https://www.imf.org/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745/index.json)
- [Bundle manifest](/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745/bundle-manifest.json)

## Bibliographic details
- Authors: Moayad Al Rasasi, Ezequiel Cabezon
- Published: November 18, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400224584.001

---

### Overview
- 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.

### Research focus and methods
- 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.

### Key findings
- 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:
  - further improve the CBU’s governance and independence,
  - develop financial markets,
  - reduce the still large footprint of the state in the financial sector as well as in the overall economy.

### Policy recommendations
- 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.

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2022/english/wpiea2022229-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2022/english/wpiea2022229-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2022/11/18/uzbekistan-s-transition-to-inflation-targeting-525745_