IDEAS home Printed from https://ideas.repec.org/a/pal/compes/v50y2008i3p421-437.html
   My bibliography  Save this article

Inflation Targeting in Armenia: Monetary Policy in Transition

Author

Listed:
  • King Banaian

    () ([1] Department of Economics, St. Cloud State University, 386 Stewart Hall, 720 4th Ave.S., St. Cloud, Minnesota 56301, USA.
    [2] Armenian International Policy Research Group, 6303 Massachusetts Avenue, Bethesda, MD 20816, USA.)

  • David M Kemme

    () (Department of Economics, University of Memphis, Memphis, TN 38152, USA.)

  • Grigor Sargsyan

    () ([1] 2Armenian International Policy Research Group, 6303 Massachusetts Avenue, Bethesda, MD 20816, USA. [2] 4Central Bank of Armenia, 6 Vazgen Sargsyan, St. Yerevan 375010, Armenia.)

Abstract

As the monetary and financial systems in transition economies have evolved so have monetary policies. Many central banks have followed a course from exchange rate targeting, to targeting monetary aggregates to targeting inflation. We examine the development of monetary policy in Armenia, a small, open transition economy that adopted inflation targeting in January 2006. First, we review monetary policy in Armenia. Then we evaluate the capacity of the Central Bank of Armenia to implement inflation targeting. Finally, we estimate and simulate reaction functions to evaluate the effectiveness of monetary policy. We find that the Central Bank may have been overly restrictive. Comparative Economic Studies (2008) 50, 421–437. doi:10.1057/ces.2008.22

Suggested Citation

  • King Banaian & David M Kemme & Grigor Sargsyan, 2008. "Inflation Targeting in Armenia: Monetary Policy in Transition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(3), pages 421-437, September.
  • Handle: RePEc:pal:compes:v:50:y:2008:i:3:p:421-437
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/ces/journal/v50/n3/pdf/ces200822a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/ces/journal/v50/n3/full/ces200822a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivrendi, Mehmet & Guloglu, Bulent, 2010. "Monetary shocks, exchange rates and trade balances: Evidence from inflation targeting countries," Economic Modelling, Elsevier, vol. 27(5), pages 1144-1155, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:50:y:2008:i:3:p:421-437. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.