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Exchange Rate, Money, and Wages :, What is Driving Prices in Armenia?, Armine Khachatryan, David Grigorian, Grigor Sargsyan

Abstract
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
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. MONETARY POLICY AND PRICE DEVELOPMENTS IN ARMENIA�A BACKGROUND""; ""III. THE MODEL""; ""IV. CONCLUSIONS""; ""References""; ""Appendix Chronology of Key Events in the Monetary and Financial Sector ""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (30 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613822611

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