Exchange Rate Pass-through in Armenia
WP/19/5/08
Central Bank of Armenia
Working Paper 19/5/08
Exchange Rate Pass-through in Armenia
Stella Mnoyan
October 2019
Abstract
In this paper, we develop a semi-structural macroeconomic model to estimate the Exchange Rate Pass-through in Armenia using Bayesian estimation. The pass-through both to import prices and core inflation is somewhat lower than the average results for comparable emerging economies reported in the literature.
As we calculate time-varying pass-through rates we also explore critical factors causing shifts over time. The macroeconomic view of exchange rate pass-through incompleteness, especially the monetary policy credibility factor, plays a significant role.