This paper analyzes the monetary policy framework in Kazakhstan. The authorities have been successful in containing … inflation in the context of a managed exchange rate regime. Over the past two years, the central bank has taken steps to enhance …

This paper analyzes the monetary policy framework in Kazakhstan. The authorities have been successful in containing … inflation in the context of a managed exchange rate regime. Over the past two years, the central bank has taken steps to enhance …

. In a positive inflation environment, however, both real spot and real forward rates might well become negative, but …

Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation …. Theoretically, inflation acts as a human capital tax that decreases output growth and the real interest rate, but increases the …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately …

Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …