| Popis: |
The Eurasian Economic Union, which was officially established five years ago, faced many financial and economic problems in this period. After 2014, when sanctions against Russia began, all members’ national currency suffered serious depreciation and central banks had to actively intervene in the foreign exchange market. In fact, Russia and Kazakhstan have changed regime and switched from the fixed to the flexible exchange rate system. Since the foreign exchange market has been more stable in recent years, central banks are trying to complete the reserves that had been lost that period. Therefore, with the change of foreign reserves, money supply is also changing. The aim of this study is to examine and compare the relationship between exchange rates, reserves and money supply in five EAEU countries. Quarterly data for the period 2010-2019 was used to achieve the goal. Toda-Yamamoto causality and ARDL cointegration approach were used as a method. It was concluded that more coordinated execution of monetary and exchange rate policies would be in favor of all members. However, the basic principle should be that all members benefit equally from the cooperation. |
