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

Kharitonchik Anatoly ()
Additional contact information
Kharitonchik Anatoly: Belarusian Economic Research and Outreach Center (BEROC), Olimpiečių gatvė 1-6A, Vilnius, 09200, Lithuania

Central European Economic Journal, 2024, vol. 11, issue 58, 329-345

Abstract: 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: monetary policy; inflation; price level; interest rate; gap model (search for similar items in EconPapers)
JEL-codes: C32 E31 E52 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/ceej-2024-0022 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ceuecj:v:11:y:2024:i:58:p:329-345:n:1022

DOI: 10.2478/ceej-2024-0022

Access Statistics for this article

Central European Economic Journal is currently edited by Anna Matysiak

More articles in Central European Economic Journal from Sciendo
Bibliographic data for series maintained by Peter Golla ().