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Nominal Anchors in the CIS

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  • Mr. Peter M Keller
  • Mr. Thomas J Richardson

Abstract

Monetary policy has become increasingly important in the countries of the Commonwealth of Independent States (CIS) as fiscal adjustment and structural reforms have taken root. Inflation has been brought down to relatively low levels in almost all of these countries, raising the question of what should be the appropriate nominal anchor at this stage. Formally, almost all CIS countries have floating exchange rate regimes, yet in practice they manage their exchange rates very heavily, perhaps because of high levels of dollarization (i.e., they suffer from "fear of floating"). This paper explores the issues underlying the choice of a nominal anchor in CIS countries and seeks to assess whether the present mixed regime will prove durable.

Suggested Citation

  • Mr. Peter M Keller & Mr. Thomas J Richardson, 2003. "Nominal Anchors in the CIS," IMF Working Papers 2003/179, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/179
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    References listed on IDEAS

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    1. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 379-408.
    2. Carmen M. Reinhart, 2000. "The Mirage of Floating Exchange Rates," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 10.
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    Cited by:

    1. Wachtel, Paul & Korhonen, Iikka, 2004. "Observations on disinflation in transition economies," BOFIT Discussion Papers 5/2004, Bank of Finland, Institute for Economies in Transition.
    2. Gunther Schnabl, 2004. "International Capital Markets, Macroeconomic Stability, and Exchange Rate Stabilization in the CIS and East Asia," International Finance 0410009, University Library of Munich, Germany, revised 01 Mar 2005.
    3. Kateryna Onishchenko, 2012. "Can a pure real business cycle model explain the real exchange rate: the case of Ukraine," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(2), pages 111-135.
    4. Khurshid Kiani, 2011. "Fluctuations in Economic and Activity and Stabilization Policies in the CIS," Computational Economics, Springer;Society for Computational Economics, vol. 37(2), pages 193-220, February.
    5. Carsten Hefeker, 2010. "Taxation, corruption and the exchange rate regime," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 338-346, March.
    6. Vinhas de Souza, Lúcio & Schweickert, Rainer & Movchan, Veronika & Bilan, Olena & Burakovsky, Igor, 2005. "Now so near, and yet still so far: economic relations between Ukraine and the European Union," Kiel Discussion Papers 419, Kiel Institute for the World Economy (IfW Kiel).
    7. Starr, Martha A., 2005. "Does money matter in the CIS? Effects of monetary policy on output and prices," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 441-461, September.
    8. repec:zbw:bofitp:2009_008 is not listed on IDEAS
    9. Sideris, Dimitrios A., 2008. "Foreign exchange intervention and equilibrium real exchange rates," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(4), pages 344-357, October.
    10. Dabrowski, Marek, 2013. "Monetary policy regimes in CIS economies and their ability to provide price and financial stability," BOFIT Discussion Papers 8/2013, Bank of Finland, Institute for Economies in Transition.
    11. Bauer, Christian & Herz, Bernhard, 2007. "Credibility of CIS exchange rate policies -- A technical trader's view," Emerging Markets Review, Elsevier, vol. 8(1), pages 50-66, March.
    12. repec:zbw:bofitp:2004_005 is not listed on IDEAS
    13. Dimitrios Sideris, 2006. "Purchasing Power Parity in economies in transition: evidence from Central and East European countries," Applied Financial Economics, Taylor & Francis Journals, vol. 16(1-2), pages 135-143.
    14. Shinji Takagi & Vitalie Ciubotaru, 2013. "Putting the Pieces Together: The Moldovan Exchange Rate Policy Puzzle," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(1).
    15. Jovanovic, Branimir & Petreski, Marjan, 2014. "Monetary policy, exchange rates and labor unions in SEE and the CIS during the financial crisis," Economic Systems, Elsevier, vol. 38(3), pages 309-332.
    16. van Aarle, Bas & de Jong, Eelke & Sosoian, Robert, 2006. "Exchange rate management in Ukraine: Is there a case for more flexibility?," Economic Systems, Elsevier, vol. 30(3), pages 282-305, October.
    17. Iikka Korhonen & Aaron Mehrotra, 2010. "Money Demand in Post-Crisis Russia: Dedollarization and Remonetization," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(2), pages 5-19, March.
    18. Jamilov, Rustam, 2012. "Channels of Monetary Transmission in the CIS," MPRA Paper 39568, University Library of Munich, Germany.
    19. Schnabl, Gunther, 2005. "International capital markets and exchange rate stabilization in the CIS," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 425-440, September.
    20. repec:wsr:wpaper:y:2012:i:081 is not listed on IDEAS
    21. repec:zbw:bofitp:2007_014 is not listed on IDEAS
    22. repec:zbw:bofitp:2013_008 is not listed on IDEAS
    23. Tuuli Juurikkala & Alexei Karas & Laura Solanko, 2011. "The Role of Banks in Monetary Policy Transmission: Empirical Evidence from Russia," Review of International Economics, Wiley Blackwell, vol. 19(1), pages 109-121, February.

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