The Mechanism of Adjustment to Changes in Exchange Rate in Belarus and its Implications for Monetary Policy
The Mechanism of Adjustment to Changes in Exchange Rate in Belarus and its Implications for Monetary Policy
Author(s): Dzmitry E. Kruk
Subject(s): National Economy, Financial Markets
Published by: BEROC Belarusian Economic Research and Outreach Center
Keywords: Belarus; economy;
Summary/Abstract: This paper aims at visualizing adjustment mechanisms of the Belarusian economy to changes in exchange rate level and providing correspondent policy recommendations. The paper is organized as follows. Section 2 deals with methodological issues of equilibrium exchange rate estimation and its specifics for Belarus. Section 3 is devoted to analysis of the pass-through effect from nominal exchange rate to prices and its impact on the short-term equilibrium exchange rate. In fourth Section, main conclusions and policy recommendations are provided. Technical issues are presented in Annex A.
Series: BEROC Policy Paper Series
- Page Count: 14
- Publication Year: 2011
- Language: English
- Content File-PDF