Exchange Rate, Money, and Wages : What is Driving Prices in Armenia? /

This paper is the first attempt to look at inflation dynamics and monetary transmission mechanisms in Armenia in the context of a full information model containing three interrelated markets: foreign exchange, money, and labor. Using the vector error correction model (VECM) approach, we find that th...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Khachatryan, Armine
مؤلفون آخرون: Grigorian, David, Sargsyan, Grigor
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2004.
سلاسل:IMF Working Papers; Working Paper ; No. 2004/229
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper is the first attempt to look at inflation dynamics and monetary transmission mechanisms in Armenia in the context of a full information model containing three interrelated markets: foreign exchange, money, and labor. Using the vector error correction model (VECM) approach, we find that the exchange rate pass-through to prices is very strong relative to credit, wage, and interest rate channels. The analysis suggests a relatively fast adjustment of prices to long-run disequilibria in the exchange rate market, albeit with initial overshooting of the price level. In addition, we find no evidence of prices responding to changes in money and wages in a statistically significant manner.
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وصف مادي:1 online resource (30 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students