Does money matter in the CIS? Effects of monetary policy on output and prices

In large industrial economies, changes in monetary policy affect real economic activity in the short run but only prices in the long run. In transition economies, the question of whether monetary-policy variables affect output in the short run is open. In this paper, we examine the real effects of monetary policy in Russia, Ukraine, Belarus, and Kazakhstan using time-series methods. We find mixed evidence that money matters in these countries, although the effects are greater in Russia. Hence, we conclude that activist monetary policy will have only a limited scope in these countries in the near term. Journal of Comparative Economics33 (3) (2005) 441-461.