Monetary Transmission Mechanisms in Belarus

WPIEA2006246 Image
Price:  $18.00

Author/Editor: Rodolfo Maino, Balázs Horváth
Release Date: © November, 2006
ISBN : 978-1-45186-506-6
Stock #: WPIEA2006246
Stock Status: On back-order

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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.


Economic policy , Inflation , Interest rate policy , Monetary policy

More publications in this series: Working Papers

More publications by: Rodolfo Maino ; Balázs Horváth