Optimal Monetary Policy Framework in an Emerging Market Economy under Sanctions Pressure and Restrictions on Capital Flows

• Authors: Anatoly Kharitonchik

Abstracts

EN

The study evaluates the effectiveness of monetary policy regimes that can serve as the basis for economic policy strategies in emerging economies. Based on the macroeconomic gap model for Belarus, simulations of the strong shock impact on the economy using different monetary policy regimes have been implemented. The effects of capital flow restrictions on the stabilization capacity of monetary policy regimes have been examined. Given the existing sanctions and internal capital controls, the most preferable regime for Belarus is a flexible inflation targeting. In transforming the economy and political system towards the inclusivity of political and economic institutions, applying a flexible price-level targeting can be considered.

Keywords

EN

monetary policy; inflation; price level; interest rate; gap model

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Central European Economic Journal
• Year: 2024
• Volume: 11
• Issue: 58
• Pages: 329-345

Dates

published

2024

Contributors

author

Anatoly Kharitonchik

• Belarusian Economic Research and Outreach Center

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Identifiers

DOI

10.2478/ceej-2024-0022

Biblioteka Nauki

47270290