TY - BOOK ID - 84540539 TI - Exchange Rate, Money, and Wages : What is Driving Prices in Armenia? AU - Khachatryan, Armine. AU - Grigorian, David. AU - Sargsyan, Grigor. PY - 2004 SN - 1462383963 1452739935 1282590219 9786613822611 1451920105 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign exchange rates KW - Inflation (Finance) KW - Monetary policy KW - Monetary management KW - Economic policy KW - Currency boards KW - Money supply KW - Finance KW - Natural rate of unemployment KW - Exchange rates KW - Fixed exchange rates KW - Flexible exchange rates KW - Floating exchange rates KW - Fluctuating exchange rates KW - Foreign exchange KW - Rates of exchange KW - Econometric models. KW - Rates KW - Finance: General KW - Foreign Exchange KW - Labor KW - Money and Monetary Policy KW - International Financial Markets KW - Wages, Compensation, and Labor Costs: General KW - Demand for Money KW - Currency KW - Labour KW - income economics KW - Monetary economics KW - Currency markets KW - Wages KW - Demand for money KW - Real exchange rates KW - Financial markets KW - Money KW - Foreign exchange market KW - Armenia, Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540539 AB - 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. ER -