01858cas a2200265 a 4500 AALejournalIMF003295 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875508 1018-5941 BD-DhAAL BD-DhAAL Khachatryan, Armine. Exchange Rate, Money, and Wages : What is Driving Prices in Armenia? / Armine Khachatryan, David Grigorian, Grigor Sargsyan. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (30 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 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. Mode of access: Internet Grigorian, David. Sargsyan, Grigor. IMF Working Papers; Working Paper ; No. 2004/229 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/229/001.2004.issue-229-en.xml IMF e-Library