| Description |
1 online resource (36 pages) : illustrations |
| Series |
IMF working paper ; WP/07/133 |
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IMF working paper ; WP/07/133.
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| Contents |
I. Introduction; II. Challenges in Implementing Current Monetary Policy Frameworks; A. Brief Historical Overview; Figures; 1. Exchange Rate Developments vis-à-vis the U.S. Dollar, 1998-2006; 2. 12-month CPI, 1998-2006; 3. Selected Economic Indicators, 2001-06; B. Current Monetary and Exchange Rate Policy Regimes; Tables; 1. Monetary and Exchange Rate Policy Frameworks, end-June 2006; III. The Choice of Operating Targets; A. Transmission Mechanisms; 2. Multivariate and Bivariate Granger Causality Tests; 3. Variance Decomposition of CPI; 4. CPI Response to an Exchange Rate Shock |
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B. Near-Term Policy Implications5. CPI Response to Interest Rate and CIC Shocks; IV. An Inflation Targeting Framework; 4. Conditions Met at the Outset of IT Introduction in Emerging Market Countries; 5. Macroeconomic Indicators in Potential IT and Pre-Adoption IT Countries; A. Primacy of the Inflation Objective, Central Bank Independence, and Formal Mechanisms of Accountability; 6. Central Bank Legislation, end-June 2006; 7. Accountability in Selected IT Emerging Market Countries; B. Absence of Fiscal Dominance and Policy Coordination; C. Monetary Policy Operating Targets and Instruments |
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8. Monetary Policy Instruments, end-June 20069. Securities Markets, end-June 2006; D. Financial System Stability; E. Foreign Exchange Market; 10. Financial Soundness Indicators, 2003-05; F. Other Issues of Operational Design; 11. Status of Forecasting and Modeling; 12. Monetary Policy Transparency in Selected IT Emerging Market Countries; V. Conclusion and Summary of Recommendations; Annex; Details on the VAR Analysis; References |
| Summary |
This paper reviews the current monetary and exchange rate policy frameworks in Armenia and Georgia, and the challenges associated with the choice of a credible nominal anchor in the context of large nominal and real shocks. The paper makes a case for a gradual transition to full-fledged inflation targeting (FFIT) in both countries in the medium term. The implications of this option are examined from various angles. In particular, the monetary transmission mechanisms and compliance with major institutional prerequisites for successful FFIT adoption are analyzed. Based on this analysis, the paper identifies a series of short- and medium-term recommendations, drawing on the experience of emerging market countries that successfully moved to FFIT |
| Bibliography |
Includes bibliographical references (pages 34-36) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Transmission mechanism (Monetary policy) -- Armenia (Republic)
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Transmission mechanism (Monetary policy) -- Georgia (Republic)
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Inflation (Finance) -- Georgia (Republic) -- Econometric models
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Inflation (Finance) -- Armenia (Republic) -- Econometric models
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Inflation (Finance) -- Econometric models
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Transmission mechanism (Monetary policy)
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Armenia (Republic)
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Georgia (Republic)
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| Form |
Electronic book
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| Author |
Dabla-Norris, Era, author.
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International Monetary Fund. Middle East and Central Asia Department.
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