20 years

EJCE Year: 2005, June. Volume: 2 - Issue: 1

Impact of regulated price adjustments on price variability in a very low inflation transition economy: Case of Armenia

by Aghassi Mkrtchyan

Start page: 17 - End page: 39

Keywords: Inflation; price variability; regulated prices

Jel code: E31; E61; E65

DOI:

Abstract:

This paper examines the impact of monetary policy and administrative price adjustments on price variability in a low inflation economy characterized by relatively frequent administrative price adjustments. Fluctuations of market determined prices, prices of agricultural goods in particular, are linked to poor synchronization between administrative price changes and monetary policy. If monetary policy does not account for expected changes in administrative prices, demand for free goods shifts, 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 continue to undergo major upward price adjustments of regulated prices, which may have a negative impact on income distribution unless aggregate demand management is changed.

View this article (PDF)

In case of problems please write an e-mail to secretariat.ejce@liuc.it

Publisher perpetually authorizes participants in the LOCKSS system to archive and restore EJCE articles through the LOCKSS System for the benefit of all LOCKSS System participants. EJCE is registered as OAI-PMH data provider. OAI - Records check.
EJCE, 2018-    : Registro stampa Trib. Busto Arsizio n. 7/18 del 13.07.2018; Direttore responsabile: Laura Ballestra, Università Carlo Cattaneo - LIUC c.so Matteotti 22 20153 Castellanza VA
EJCE, 2004-2017: Supplemento a LIUC Papers, Registro stampa Trib. Busto Arsizio n. 11/93 del 11.06.1993; Direttore responsabile: Laura Ballestra, Università Carlo Cattaneo - LIUC c.so Matteotti 22 20153 Castellanza VA