Monetary Policy and the Real Economy: A Structural VAR Approach for Kazakhstan

Abstract

This paper shows monetary policy indicator which better explains Kazakhstani transmission mechanism. The study also discusses how foreign monetary policy or oil prices affect domestic macroeconomic variables. We use a seven variable by utilizing quarterly time series data from Kazakhstan covering the period from January 2005 to December 2017. They are: interest rate, exchange rate, output, reserve money, consumer price index, then, World oil price index and Federal Funds rate.