Abstract
The present dissertation consists of three studies on the issues of inflation, monetary policy effects and dollarization in three economies in Central Asia Kazakhstan, the Kyrgyz Republic and Tajikistan. The fi rst chapter examines monetary policy efficiency in Central Asian economies by investigating the monetary transmission mechanism in the regions economies.
The study investigates the main transmission channels: interest rate channel, exchange rate pass-through, and bank lending channel. The second chapter follows up with a close analysis of currency substitution in the same group of economies.
The time period covered in the study spans from 2000 until the end of 2008. The fi nal chapter provides a study on the behavior of iflation in two economies in Central Asia: Kazakhstan and the Kyrgyz Republic.
Tajikistan was not included in the study due to short time span of the available data since this empirical investigation is based on quarterly data.