01956cas a2200241 a 4500 AALejournalIMF002496 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854923 1018-5941 BD-DhAAL BD-DhAAL Lissovolik, Bogdan. Determinants of Inflation in a Transition Economy : The Case of Ukraine / Bogdan Lissovolik. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines determinants of inflation in Ukraine during 1993-2002 in a cointegrating framework. Two basic theoretical models-a markup and a money market model-are tested. While broad money is cointegrated with the CPI for the whole sample and for early subsamples, the cointegration ceases to be statistically significant between 1996-2002, in part because of strong remonetization. The mark-up model offers a more consistent and well-fitting overall framework for 1996-2002 data, pointing inter alia to a greater role of administered prices in the CPI within a fairly mainstream inflation process. The "long-term" monetary transmission mechanism operates through the exchange rate and wages, but broad money clearly enters short-term inflation determinants. Prudent macroeconomic policies, grain harvests, and administrative decisions explain the sharp decline of inflation over 2000-2002. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/126 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/126/001.2003.issue-126-en.xml IMF e-Library