Currency Substitution: A Case of Kazakhstan (2000:1 - 2007:12)

14 Pages Posted: 14 Oct 2009

See all articles by Oskenbayev Yessengali

Oskenbayev Yessengali

affiliation not provided to SSRN

Mesut Yilmaz

Department of Economics; Suleyman Demirel University-Kazakhstan

Kanat Abdulla

Independent

Multiple version iconThere are 2 versions of this paper

Date Written: January 1, 2009

Abstract

This paper aims to investigate the demand for money in Kazakhstan. This study covers the period starting from 2000:01, when capital liberalization program was launched and National Bank approved managed float regime (National Bank employed adjustable exchange rate regime before exchange rate crisis in Kazakhstan in 1999) to 2007:12 as recent available data for investigation variables. In order to achieve the goal we set demand for money function is estimated using cointegration methodology aimed for variables integrated of order one. The results show important key factors for controlling money demand could be applied by National Bank of Kazakhstan. Besides, there was reversal of currency in Kazakhstan over the period under the investigation.

Keywords: Demand for money, currency substitution, dollarization, Kazakhstan

JEL Classification: C32, F31, F41, F43, E31, E41

Suggested Citation

Yessengali, Oskenbayev and Yilmaz, Mesut and Yilmaz, Mesut and Abdulla, Kanat, Currency Substitution: A Case of Kazakhstan (2000:1 - 2007:12) (January 1, 2009). William Davidson Institute Working Paper No. 946, Available at SSRN: https://ssrn.com/abstract=1488375 or http://dx.doi.org/10.2139/ssrn.1488375

Oskenbayev Yessengali (Contact Author)

affiliation not provided to SSRN ( email )

Mesut Yilmaz

Department of Economics ( email )

Almaty
Kazakhstan

Suleyman Demirel University-Kazakhstan ( email )

Almaty
Kazakhstan

Kanat Abdulla

Independent ( email )