Armenia's Prices Driven by Exchange Rate, Not Money or Wages.
The article examines what affects prices in Armenia by studying how exchange rates, money, and wages interact. Using a special model, the researchers found that changes in exchange rates strongly impact prices, more than credit, wages, or interest rates. Prices adjust quickly to exchange rate changes, sometimes overshooting at first. Interestingly, changes in money and wages don't seem to have a big impact on prices in Armenia.