VAR Analysis of the Monetary Transmission Mechanism in Kyrgyzstan
This article examines the effects of monetary transmission on real output and price level in Kyrgyzstan which is very important issue for central banks. We analyzed the relationships between the money supply, real output, price level, interest rate, credit and real exchange rate by using the vect...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Ala-Too International University
2013-05-01
|
| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2013Vol06No11p121ATABAEV-GANIYEV.pdf |
| Summary: | This article examines the effects of monetary transmission on real output and price
level in Kyrgyzstan which is very important issue for central banks. We analyzed the
relationships between the money supply, real output, price level, interest rate,
credit and real exchange rate by using the vector autoregression approach (VAR)
and monthly data for 2003-2011. As a result the interest rate channel remains
weak, on the other hand it have been revealed that the credit channel has some
affects to real output, the exchange rate channel affects the prices. Exchange rate
channel remains still the most effective channel. Based on these results, it can be
argued that government can use credit and interest rate channel in increasing real
output, and the exchange rate channel in achieving price stability in Kyrgyzstan.
|
|---|---|
| ISSN: | 1694-5948 1694-5972 |