Demand For Money In Kazakhstan: 2000-2007

by Yilmaz, Mesut;  Oskenbayev, Yessengali and Kanat, Abdulla 
Published in Romanian Journal of Economic Forecasting
, 2010, volume 13 issue 1, 118-129

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This paper aims to investigate the demand for money in Kazakhstan. This study covers the period starting from 2000:01, when capital liberalization program was launched and the National Bank approved managed float regime (the National Bank employed adjustable exchange rate regime before exchange rate crisis in Kazakhstan in 1999) to 2007:12 as recent available data for investigation variables. In order to achieve the goal we set demand for money function is estimated using cointegration methodology aimed for variables integrated of order one. The results show important key factors for controlling money demand could be applied by the National Bank of Kazakhstan. Besides, there was reversal of currency in Kazakhstan over the period under investigation.

Keywords: demand for money, currency substitution, reversed dollarization, Kazakhstan
JEL Classification:
C32, C51