A VECM evaluation of monetary transmission in Uzbekistan

This paper outlines a current research project on the monetary transmission process in Uzbekistan. The project employs a VAR/VECM methodology in order to represent the monetary transmission process of Uzbekistan in a formal model. This model is then estimated for data from 2000 to 2009. The resulting impulse response estimators are interpreted. The general findings so far obtained support the hypothesis that the interest rate channel in Uzbekistan is relatively weak. Monetary transmission via the exchange rate channel seems to be stronger, even if the form of the channel remains quite ambiguous. Nevertheless the relevance of this contribution should rather be seen in the suggestion of a specific methodology than in the generation of nal results. Hopefully, those will be obtained at a later time. See full paper See full paper