A simplified structural model of Belarusian economy is employed to study the relation between monetary and exchange rate policy in Belarus. It is confirmed that in the long run monetary policy and exchange rate policy can not be used independently. In the short-run monetary and exchange rate...

Three alternative forms of relation between the interest rates and the exchange rate implied by the speculative behavior are tested. The uncovered interest parity, implying equal return of assets in home and foreign currency, is shown not to hold in Belarus. The uncovered interest parity with...