Impact of exchange rate on prices in the presence of structural breaks

Today exchange rate influences many areas and indicators of economic activity in the country, including consumer price index In many studies the impact of exchange rate on prices (denoted as pass-through effect) is considered from theoretical and empirical point of view In this paper we study pass-through effect in Russia from 1994 to 2008 Particular attention is paid to structural shifts in the economy which occurred during the period under investigation, their estimating and modeling, as it turns out that structural changes are important for correct determining pass-through effect