The Experience of Foreign Countries in the Monetary System Development

  • Yerkenazym D. ORYNBASSAROVA The Karaganda State University of the name of academician E.A. Buketov, Karaganda
  • Yerkebulan S. KARIBAEV The Karaganda State University of the name of academician E.A. Buketov, Karaganda


This study aims in analyzing the world experience in the development of monetary systems along with the subsequent elaboration of recommendations related to the development of the Kazakh monetary policy. The authors used general theoretical methods (comparison, generalization and analysis). The study analyzes the methods, models and tools currently used by the central banks of the developed economies. Regulatory mechanism involves forecasting methods, regulation tools related to cash and non-banking operations and specific forms of control over the money supply dynamics, bank interest rates, bank liquidity at the macro and micro level. The paper identifies their strengths and weaknesses, as well as the possibilities of their practical use in the Kazakh monetary market regulations. The macroeconomic model of monetary policy implementation is considered with regard to the viewpoints, expressed by the supporters of monetarism and Keynesianism. The novelty of this research lies in analyzing the experience of the developed economies in the context of highlighting not only general and specific features related to the development of monetary systems of these countries, but also in terms of their applicability and improvement in other countries, having smaller resource base and weaker experience in good governance (in particular, Kazakhstan).


[1] Bean, C. 2012. Panel remarks: global aspects of unconventional monetary policies. Conference on quantitative easing and other unconventional monetary policies. Bank of England. Viewed on 20 October 2014: 43-46.
[2] Benes, J., Berg, A., Portillo, R., and Vavra, D. 2013. Modeling Sterilized Interventions and Balance Sheet Effects of Monetary Policy in a New-Keynesian Framework. IMF Working Paper 13: 11.
[3] Blanchard, O., Gustavo, A., and Irineu de Carvalho Filho. 2015. Can Foreign Exchange Intervention Stem Exchange Rate Pressures from Global Capital Flow Shocks. IMF Working Papers 15: 159.
[4] Bowdler, C., and Radia, A. 2012. Unconventional monetary policy: the assessment. Oxford Review of Economic Policy, 28(4): 603-621.
[5] Bowman, D., Londono, J.M., and Sapriza, H. 2014. US unconventional monetary policy and transmission to emerging market economies. International Finance Discussion Papers 1109: 56.
[6] Epstein, N., and Portillo, R. 2014. Monetary Policy in Hybrid Regimes: The Case of Kazakhstan. IMF Working Paper 14: 108.
[7] Fic, T. 2013. The spillover effects of unconventional monetary policies in major developed countries on developing countries. Department of Economic and Social Affairs. United Nations. DESA Working Paper. 131.
[8] Fukuda, Y., Kimura, Y., Sudo, N., and Ugai, H. 2013. Cross-Country Transmission Effect of the U.S. Monetary Shock under Global Integration. Bank of Japan Working Paper, 1: 36-45.
[9] Gopalan, S. 2015. Financial Liberalisation and Foreign Bank Entry in Emerging and Developing Economies: What Does the Literature Tell Us? Journal of International Commerce. Economics and Policy, 12: 87-101.
[10] Gürgen, E. et al. 1999. Economic Reforms in Kazakhstan.Kyrgyz Republic. Tajikistan, Turkmenistan and Uzbekistan. IMF Publications. Occasional Paper, 183: 25-37.
[11] Hosono, K., and Isobe, S. 2014. The Financial Market Impact of Unconventional Monetary Policies in the U.S., the U.K., the Eurozone, and Japan. PRI Discussion Paper Series, 14A-05: 35-47.
[12] Khuziakhmetov, A.N. 2016. Social Competence Formation of Students In the Process of Students Self-Government. International Electronic Journal of Mathematics Education, 11 (1): 81-89.
[13] Levin, A.T. 2014. The Design and Communication of Systematic Monetary Policy Strategies. Journal of Economic Dynamics and Control, 49: 52–69.
[14] Mishkin, F. 2010. Monetary Policy Strategy. Cambridge: MIT Press. 152.
[15] Mishra, P., Peter, J.M., and Spilimbergo, A. 2012.Monetary Transmission in Low Income Countries: Effectiveness and Policy Implications. IMF Economic Review, 60(2): 270–302.
[16] O’Connell, S., Catherine, P., Portillo, R., and Unsal, D.F. 2015. Signaling and the Transmission of Monetary Policy: The Role of the Policy Regime. Unpublished Manuscript. Washington: International Monetary Fund. 266.
[17] Ostry, J., Ghosh, R.A., and Chamon, M. 2012. Two Targets, Two Instruments: Monetary and Exchange Rate Policies in Emerging Market Economies. IMF Staff Discussion Note. Washington: International Monetary Fund. 264.
[18] Sichei, M., and Kamau, W.A. 2012. Demand For Money: Implications for the Conduct of Monetary Policy in Kenya. International Journal of Economics and Finance, 4(8): 72–82.
[19] Taylor, J.B. 2013. International monetary policy coordination: past, present, and future. Mexico: BIS Working Papers. 437.
[20] Zhang, L., and Zoli, E. 2014. Leaning against the wind: macroprudential policy in Asia. IMF Working Paper WP/14/109: 1-27.
How to Cite
ORYNBASSAROVA, Yerkenazym D.; KARIBAEV, Yerkebulan S.. The Experience of Foreign Countries in the Monetary System Development. Journal of Advanced Research in Law and Economics, [S.l.], v. 7, n. 5, p. 1118–1126, dec. 2016. ISSN 2068-696X. Available at: <>. Date accessed: 14 apr. 2024.


monetary policy; monetary system; monetarism; Keynesian model; economic growth