Estimates of the Output Gap in Armenia with Applications to Monetary and Fiscal Policy

WPIEA2010197 Image
Price:  $18.00

Release Date: © August, 2010
ISBN : 978-1-45520-527-1
Stock #: WPIEA2010197
Stock Status: On back-order

Languages and formats available



This paper employs several econometric techniques to estimate the Armenian output gap. The findings indicate that the output gap is significantly positive in 2007 and 2008 and decreased dramatically in 2009. The paper uses these results to estimate a New Keynesian Phillips curve for Armenia, suggesting a significant role of the output gap and inflation expectations in determining current inflation. Finally, the underlying fiscal stance over the period 2000-09 is assessed by estimating the cyclically-adjusted fiscal balance. Most of Armenia’s fiscal deficit is found to be structural. Fiscal policy, while providing counter-cyclical support in 2009, has been largely pro-cyclical in the past.


Business cycles , Economic development , Economic policy , Fiscal policy , Inflation , Monetary policy

More publications in this series: Working Papers