01711cas a2200253 a 4500 AALejournalIMF000972 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852592 1018-5941 BD-DhAAL BD-DhAAL Mongardini, Joannes. Rachet Effects in Currency Substitution : An Application to the Kyrgyz Republic / Joannes Mongardini, Johannes Mueller. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Currency substitution is now a common issue in the design of monetary policy in most transition economies. This paper analyzes the persistence of this phenomenon in the Kyrgyz Republic by including a ratchet variable in the model specification. The main conclusion of the paper is that, while some degree of persistence is present in the allocation of bank deposit, currency substitution in the economy at large has not yet reached a point where reversing it would be difficult. In this regard, there is still room for monetary policy to influence currency allocation in the private sector. Mode of access: Internet Mueller, Johannes. IMF Working Papers; Working Paper ; No. 1999/102 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/102/001.1999.issue-102-en.xml IMF e-Library