Economics, Econometrics and Finance
4 years ago

Belarus High Inflation Linked to Exchange Rate and Wage Policies

SSRN Electronic Journal
Inflation and the Monetary Transmission Mechanism in Belarus, 1996-2001
Željko Bogetić

Paper Summary

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The article looks at why Belarus had high inflation from 1996 to 2001. By analyzing the relationship between money, wages, prices, and exchange rates, the researchers found that wages and exchange rates have a big impact on prices in Belarus. Money seems to just follow along. This suggests that controlling wages and exchange rates, along with money supply, could help reduce inflation in Belarus.