The Economic Crisis Hits Armenia

Until now, I haven't really been feeling the full effect of the global economic crisis here. For the most part life seemed to be going on as usual. I mean, the economy here already had some serious problems (if it didn't, I wouldn't be here researching the social consequences of labor migration to Russia, after all). But the new crisis hadn't really seemed to impact here directly, except in terms of a wave of migrants coming home from Russia because the Russian economy is collapsing.

But today, it hit. The Armenian central bank devalued the dram by 21% and the exchange rate will now be free-floating, as part of an agreement to get a bailout from the IMF.

So...really sucks for anyone whose money is denominated in drams, and I assume prices are going to rise. You could definitely feel the sense of worry and panic in the air...especially if you went near a currency exchange booth. People have been going to stores and buying everything they can. According to my friend Anush, some of the smaller shops have already run out of things...oil, butter, sugar...
For any of you who can read Russian, here's another article.

Maybe i just don't understand economics, but i was just reading another article about what's going on here, and it's talking about how the dram being devalued is going to be good for the Armenian economy because it will improve exports and create jobs.....but....somehow that just seems wrong when people aren't going to be able to afford to eat....

I'm sorry that I don't have more insightful economic analysis than that....but if any of my readers know more about econ than I do and want to explain the ramifications, please go ahead and comment!

Also sorry this post is kind of disjointed--I keep re-editing and adding things to it as I find out more!