Resource title

Modelling Inflation Dynamics in Transition Economies: The Case of Ukraine

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Resource description

The paper explores dynamics of inflation in Ukraine in the period of relative macroeconomic stability. The analysis of interrelationship between inflation, money growth, wage growth, and a proxy for devaluation expectations is based on impulse responses and variance decomposition of a vector autoregression model. We find that changes in devaluation expectations appear to be the most important factor driving price development, while money supply growth has negligible impact on inflation. In addition, our results evidence of high degree of inflation inertia in the economy, which may re°ect the specific institutional settings of Ukrainian economy.

Resource author

Boriss Siliverstovs, Olena Bilan

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18327

Resource license

Adapt according to the presented license agreement and reference the original author.