Money growth-inflation relationship in postcommunist Russia

The influence of changes in broad money growth on future inflation is consi derably weaker and more protracted as the new economic environment in Russi a has become more stable. Our evidence suggests that the systematic pattern for money-price relationship is fading in the new environment. Also, the a verage speed of transmission from changes in the growth of ruble broad mone y to inflation has shifted from just over 3 months in the first 2 1/2 years of transition to just short of 5 months thereafter. In addition, the model s of inflation presented in this paper give a reasonably good short-hand de scription of the fundamental inflation process in Russia. (C) 2000 Academic Press.