Money, Barter and Inflation in Russia

Byung-Yeon Kim, Jukka Pirttilä and Jouko Rautava
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Jouko Rautava: Bank of Finland

Macroeconomics from University Library of Munich, Germany

Abstract: Using a macroeconometric framework, this paper analyses relationships among money, barter and inflation in Russia during the transition period. Following the development of a theoretical framework that introduces barter in a standard small open economy macro model, we estimate our model using structural cointegration and vector error correction methods. Our findings suggest that barter has resulted partly from output losses and partly from a reduction in real money balances, but to a lesser extent. There is some evidence that the effect of barter on prices is less than that of money. We also find that increases in barter are affected by banking failure. Our results imply that a macro model that excludes barter fails to capture all the relevant information for inference on money and inflation in Russia.

Keywords: Barter; money; inflation; cointegration; error-correction mechanism; Russia (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Pages: 44 pages
Date: 2002-09-19
New Economics Papers: this item is included in nep-cba and nep-mon
Note: Type of Document - pdf; prepared on PC; pages: 44
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Money, barter, and inflation in Russia (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0209009

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