01937cas a2200253 a 4500 AALejournalIMF009149 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865080 1018-5941 BD-DhAAL BD-DhAAL Dabla-Norris, Era. Transmission Mechanisms of Monetary Policy in Armenia : Evidence from VAR Analysis / Era Dabla-Norris, Holger Floerkemeier. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (27 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 monetary policy transmission in Armenia in light of the authorities' intention to shift to an inflation-targeting regime over the medium term. We find that the capability of monetary policy to influence economic activity and inflation is still limited, as important channels of monetary transmission are not fully functional. In particular, the interest rate channel remains weak, even though there is some evidence of transmission to prices of changes in the repo rate, the central bank's new operating target for inflation. As in other emerging and transition economies with a high degree of dollarization, the exchange rate channel has a strong impact on the inflation rate. Moreover, we find that inflation does respond to broad money shocks, once foreign currency deposits are included. Mode of access: Internet Floerkemeier, Holger. IMF Working Papers; Working Paper ; No. 2006/248 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/248/001.2006.issue-248-en.xml IMF e-Library