The short and variable lags of Russian monetary policy

Abstract

This paper assesses empirically the lag between changes in money supply and inflation in Russia during the economic transition.In line with the previous literature, we find that money supply changes affect inflation with a fairly short lag.In addition to this, we find tentative evidence for some lengthening of the lag as the transition has progressed.However, these results are not very robust, and the lags that are found to be significant are generally shorter than those found in the earlier literature. Keywords: Inflation, monetary policy, Russia