Inflation and Stabilization in Transition Economies : A Comparison with Market Economies /

A simple model is developed to understand inflationary pressures and stabilization in nonmarket economies. In light of the model, the paper reviews the inflation and stabilization experiences of several transition economies in Eastern Europe and the former Soviet Union. These experiences are then co...

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Detalles Bibliográficos
Autor principal: Vegh Gramont, Carlos
Otros Autores: Sahay, Ratna
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 1995.
Colección:IMF Working Papers; Working Paper ; No. 1995/008
Acceso en línea:Full text available on IMF
Descripción
Sumario:A simple model is developed to understand inflationary pressures and stabilization in nonmarket economies. In light of the model, the paper reviews the inflation and stabilization experiences of several transition economies in Eastern Europe and the former Soviet Union. These experiences are then compared to those of high inflation market economies. The paper concludes that, despite significant differences in the economic structure and institutional framework, the inflation and stabilization experiences in transition and market economies are similar in many respects. In particular, monetary accommodation and lack of fiscal discipline are critical in sustaining inflation, and exchange rate-based anchors seem more successful than money anchors in bringing down inflation. On the other hand, wage policies appear to be more critical in reigning inflation in transition economies than in market economies.
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Descripción Física:1 online resource (68 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students