IMF Working Papers

Nominal Anchors in the CIS

By Peter M Keller, Thomas J Richardson

September 1, 2003

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Peter M Keller, and Thomas J Richardson. Nominal Anchors in the CIS, (USA: International Monetary Fund, 2003) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Currencies, Dollarization, Exchange rates, Foreign exchange, Inflation, Inflation targeting, Monetary policy, Money, Prices

Keywords: Balance of payments, Baltics, CIS context, CIS country, CIS currency, CIS economy, CIS policymaker, CIS policymakers state, CIS trade, Currencies, Dollarization, Eastern Europe, Exchange market intervention, Exchange rates, Inflation, Inflation targeting, Managed float, Monetary policy, Money demand, Nominal anchors, Policymakers state, Underdeveloped exchange market, Underdeveloped exchange markets in the CIS, WP

Publication Details

  • Pages:

    42

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/179

  • Stock No:

    WPIEA1792003

  • ISBN:

    9781451859058

  • ISSN:

    1018-5941

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