The Game of Anchors : Studying the Causes of Currency Crises in Belarus /

Belarus experienced a sequence of currency crises during 2009-2014. Our empirical results, based on a structural econometric model, suggest that the activist wage policy and extensive state program lending (SPL) conflicted with the tightly managed exchange rate regime and suppressed monetary policy...

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Bibliografiske detaljer
Hovedforfatter: Miksjuk, Alex
Andre forfattere: Ouliaris, Sam, Pranovich, Mikhail
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2015.
Serier:IMF Working Papers; Working Paper ; No. 2015/281
Online adgang:Full text available on IMF
Beskrivelse
Summary:Belarus experienced a sequence of currency crises during 2009-2014. Our empirical results, based on a structural econometric model, suggest that the activist wage policy and extensive state program lending (SPL) conflicted with the tightly managed exchange rate regime and suppressed monetary policy transmission. This created conditions for the unusually frequent crises. At the current juncture, refocusing monetary policy from exchange rate to inflation would help to avoid disorderly external adjustments. The government should abandon wage targets and phase out SPL to remove the underlying source of the imbalances and ensure lasting stabilization.
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Fysisk beskrivelse:1 online resource (49 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students