EconPapers    
Economics at your fingertips  
 

IMPACT OF REGULATED PRICE ADJUSTMENTS ON PRICE VARIABILITY IN A VERY LOW INFLATION TRANSITION ECONOMY: CASE OF ARMENIA

Aghassi Mkrtchyan

No wp731, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: The impact of macroeconomic management (monetary policy) and administrative price adjustments on price variability in a low inflation economy characterized by relatively frequent administrative price adjustments is examined. Fluctuations of market determined prices, prices of agricultural goods in particular, are linked to the lack of synchronization between administrative price changes and monetary policy. If monetary policy does not account for expected changes in administrative prices, demand in ???free??? goods markets will shift causing fluctuation of prices for agricultural goods, because the supply of these goods is highly inelastic in Armenia. The findings contribute to a better understanding of agricultural price variability during 1998-2002. The impact of macroeconomic policy and structural adjustments on income distribution and rural poverty incidence are also examined. This research has immediate policy implications since Armenia will undergo major upward price adjustments for goods and services with regulated prices, which may have a negative impact on income distribution if aggregate demand management is unchanged.

Keywords: Inflation; price variability; regulated prices (search for similar items in EconPapers)
JEL-codes: E31 E61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac, nep-reg and nep-tra
Date: 2004-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://deepblue.lib.umich.edu/bitstream/2027.42/40117/3/wp731.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2004-731

Access Statistics for this paper

More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().

 
Page updated 2019-05-19
Handle: RePEc:wdi:papers:2004-731