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.