Should Kazakhstan join a monetary union?
Loading...
Date
2016
Authors
Zhukenov, Ilyas
Journal Title
Journal ISSN
Volume Title
Publisher
Nazarbayev University Graduate School of Public Policy
Abstract
In order to answer whether Kazakhstan should or should not join a monetary union, this
project gauges the practical ideal type of a monetary union that brings a fair, stable and
prosperous exchange rate arrangement. In doing so, it reveals common criteria of such
union via careful literature review. Then it compares Kazakhstan‟s current state against
these practical criteria using necessary research methods. The evidence suggests that a
monetary union within the EAEU is considerably far from its practical ideal type, as most
of the revealed criteria are not fully satisfied. Thus, a monetary union within the EAEU
would not be feasible for Kazakhstan. Nevertheless, a monetary union between Kazakhstan and Russia might become feasible, but not necessarily beneficial for Kazakhstan in the long-term perspective. These countries might actually experience endogenous real convergence if necessary institutional reforms were made in both countries, thereby increasing the sustainability of a fixed exchange rate arrangement between them.
Description
Keywords
monetary union, Kazakhstan
Citation
Zhukenov, Ilyas (2016) Should Kazakhstan join a monetary union? Nazarbayev University, Graduate School of Public Policy.