Can the Release of a Monetary Overhang Trigger Hyperinflation? /

It is widely feared that, once prices are decontrolled in the formerly centrally-planned economies, households' release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country's fiscal, monetary, and labor market policies are destabi...

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Autor principal: Osband, Kent
Altres autors: Lin, Shoukang
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1992.
Col·lecció:IMF Working Papers; Working Paper ; No. 1992/024
Accés en línia:Full text available on IMF
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Sumari:It is widely feared that, once prices are decontrolled in the formerly centrally-planned economies, households' release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country's fiscal, monetary, and labor market policies are destabilizing typically does not depend on the money stock. However, the release of a monetary overhang can precipitate a large initial real wage shock. To the extent such a shock is not feasible politically, there is a motive for monetary reform, which must be weighed against the cost of reduced public confidence in money.
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Descripció física:1 online resource (36 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students