Monetary Transmission Mechanisms in Belarus

24 Pages Posted: 13 Nov 2006

See all articles by Rodolfo Maino

Rodolfo Maino

International Monetary Fund (IMF)

Balazs Horvath

International Monetary Fund (IMF) - European Department

Date Written: November 2006

Abstract

We explore monetary policy transmission by estimating VAR impulse response functions to illustrate the Belarusian economy's response to unexpected changes in policy and exogenous variables. We find a significant exchange rate pass-through to prices, and interest rate policy following, rather than leading, financial market developments. Our estimated monetary policy reaction function shows the central bank striking a balance between real exchange rate stability and containing inflation. We discuss dollarization, administrative interventions, and other features complicating monetary policy transmission, review specific constraints and vulnerabilities, and conclude with observations on possible measures that could raise the effectiveness of monetary policy in Belarus.

JEL Classification: C22, C32, E31, E51, E52

Suggested Citation

Maino, Rodolfo and Horvath, Balazs, Monetary Transmission Mechanisms in Belarus (November 2006). IMF Working Paper No. 06/246, Available at SSRN: https://ssrn.com/abstract=944084

Rodolfo Maino (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Balazs Horvath

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
107
Abstract Views
870
rank
339,037
PlumX Metrics