02065cas a2200253 a 4500 AALejournalIMF014476 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498340724 1018-5941 BD-DhAAL BD-DhAAL Epstein, Natan. Monetary Policy in Hybrid Regimes : The Case of Kazakhstan / Natan Epstein, Rafael Portillo. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (32 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 This paper analyzes the monetary policy framework in Kazakhstan. The authorities have been successful in containing inflation in the context of a managed exchange rate regime. Over the past two years, the central bank has taken steps to enhance its ability to regulate liquidity in the financial system. However, the current policy interest rate does not properly signal the stance of policy, reflected in a weak transmission from the policy rate to money market interest rates. With the use of a stylized model, the paper studies the macro determinants of money market interest rates under the current framework, and illustrates both the benefits and challenges of active interest rate policy. The model shows that limited use of instruments to steer short-term interest rates weakens the framework's ability to counteract shocks. Finally, the paper explores the implications of varying degrees of exchange rate flexibility for interest rate policy and open market operations. Mode of access: Internet Portillo, Rafael. IMF Working Papers; Working Paper ; No. 2014/108 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/108/001.2014.issue-108-en.xml IMF e-Library