This paper explores empirical SVAR-based measure of inflation expectations for Belarus.

This study is devoted to the theoretical concepts of fiscal multipliers and their assessment for the Belarusian economy, in particular the magnitudes of these multipliers for the revenue and spending parts of the budget of Belarus.

The paper determines episodes of financial stress in Belarus during 2004-2016 period using constructed financial stress index, and offers an analytical framework to evaluate the influence of financial turmoil on Belarus's economy, in particular economic activity and monetary policy. The findings show evidence of two episodes of financial stress and two episodes of recessions in Belarus during studied period. The results from the estimated ARDL models show that high level of financial stress causes the substantial downturn in economic activity of Belarus. Moreover, the results of Toda and Yamamoto causality analysis indicate that higher financial stress in Belarus has led to lower economic activity that caused higher inflation, which in turn led to higher policy rate introduced in order to constrain inflation in Belarus. Finally, from theoretical point of view results also signify that there is no evidence for the support of the conventional wisdom hypothesis in Belarus since 2004. Therefore, price stability is not a sufficient condition to support financial stability in Belarus and should certainly be addressed independently of the objective of price stability of the National Bank of Belarus.

This study analyzes the effects of directed lending upon total factor productivity and GDP growth in Belarus over the period of 2000–2012.

The study deals with a specific form of financial repression peculiar to Belarus – a mechanism of directed loans.