Money Growth–Inflation Relationship in Postcommunist Russia

Money demand and inflation in dollarized economies: The case of Russia

“…Deviations from this long-run relationship can be quite persistent as they can take up to 12 months to be corrected. 30 The lag lengths of three to five months for the transmission of money to inflation in Russia are consistent with the lag lengths found by Nikolić (2000).…”

“…They also find some evidence that the lag length was extended and weakened from 1994 onward as disinflation progressed and that velocity became less predictable. Nikolić (2000) finds no stable linear relationship between ruble broad money or overall broad money, including foreign currency deposits, and inflation for the period from 1994 to 1998, which suggests that inflation was no longer a monetary phenomenon in the second half of the 1990s. 9 Such a two-stage approach is commonly used for developing countries with time series data that are of limited length and that tend to be subject to significant measurement errors, as Kuijs (2002), Sacerdoti and Xiao (2001) and Williams and Adedeji (2004) exemplify.…”

“…5 Bahmani-Oskooee and Barry (2000) obtain a stationary relationship for the period from January 1991 to June 1997 but, nevertheless, find evidence for instability of real ruble broad money demand in Russia. For a similar period from January 1992 to July 1998, Nikolić (2000) finds that the relationship between broad money and inflation is unstable and, furthermore, that it is sensitive to changes in the economic and institutional environment.…”

Investigating Croatian Inflation through the Cointegration with Structural Break Approach

“…This holds in: Albania (Haderi et al, 1999), Russia (Nikolic, 2000), Slovenia (Ross, 2000) and in Czech Republic, Hungary and Poland (Brada and Kutan, 2002). The exchange rate seems to exert a notable impact on inflation in Poland (Golinelli and Orsi, 2001), Czech Republic and Hungary (Golinelli and Orsi, 2001), Slovenia (Ross, 2000) and in the three Baltic states (Masso and Staehr, 2005).…”

Does inflation or currency depreciation drive monetary policy in Russia?

“…7 1992 to mid-1995 saw large budget deficits being initially financed by money creation leading to high and volatile inflation rates. Studies on Russia's 1990s high inflation include Buch (1998), Korhonen (1998) and Nikolic (2000). The average real interest rate was negative.…”