Price Liberalization Money Growth And Inflation During The Transition To A Market Economy

Author : Mr.Ernesto Hernández-Catá
Publisher : International Monetary Fund
Page : 25 pages
File Size : 42,8 Mb
Release : 1999-06-01
Category : Business & Economics
ISBN : 9781451849851

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Price Liberalization, Money Growth, and Inflation During the Transition to a Market Economy by Mr.Ernesto Hernández-Catá Pdf

This paper examines the influence of economic liberalization and monetary growth on inflation during the transition from central plan to market. It concludes that price decontrol had a substantial, one-time effect on the price level but no lasting effect on inflation; that economic liberalization broadly defined may have helped dampen price increases; and that monetary expansion has been the fundamental determinant of inflation in the region. The paper also finds that the intensity of liberalization has been related to geographic proximity to market economies, to the size of the underground economy, and to the degree of political freedom.

Author : Ronald I. Mckinnon
Publisher : JHU Press
Page : 260 pages
File Size : 52,6 Mb
Release : 1993-10
Category : Business & Economics
ISBN : 0801847435

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The Order of Economic Liberalization by Ronald I. Mckinnon Pdf

Can knowledge of financial policies in developing countries over four decades help the socialist economies of Asia and Eastern Europe become open market economies in the 1990s? In all these countries the loss of fiscal and monetary control has often resulted in high inflation that undermines the liberalization process itself. In the second edition of The Order of Economic Liberalization, Ronald McKinnon builds on his influential work on the liberalization of financial markets in less developed countries and outlines the progression necessary to move from a "repressed" to an open economy. New to this edition are chapters that contrast the gradual Chinese approach to liberalizing domestic and foreign trade with the "big bang" approach followed by some Eastern European countries and republics of the former Soviet Union. Financial control and macroeconomic stability, McKinnon argues, are more critical to a successful transition than is any crash program to privatize state-owned industrial assets and the banking system.

Author : Pierre-Richard Agénor
Publisher : International Monetary Fund
Page : 36 pages
File Size : 55,8 Mb
Release : 1993-06-01
Category : Business & Economics
ISBN : 9781451972917

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Price Reform and Durable Goods in the Transition to a Market Economy by Pierre-Richard Agénor Pdf

The paper examines the short- and long-term effects of price liberalization in a reforming socialist economy. The analysis is based on an optimizing framework that highlights hoarding behavior and the existence of parallel goods markets. The behavior of official and parallel market prices, stock of durables, and the velocity of money in the transition period between reform announcement and reform implementation is characterized, in the presence and absence of uncertainty about the transition date.

Author : Mr.Ernesto Hernández-Catá
Publisher : International Monetary Fund
Page : 30 pages
File Size : 51,7 Mb
Release : 1997-04-01
Category : Business & Economics
ISBN : 9781451969979

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Liberalization and the Behavior of Output During the Transition From Plan to Market by Mr.Ernesto Hernández-Catá Pdf

This paper deals with liberalization and the evolution of output during the transition from plan to market. It explains why strong liberalization leads to a comparatively steep fall in output early in the transition, but a relatively strong recovery later on. Because it takes time to restructure the capital stock inherited from the old system, liberalization initially leads to transitional unemployment of capital and the contraction of the old enterprise sector. By making room quickly for the new, more efficient enterprises, however, liberalization also sets the stage for recovery and a much higher level of income in the medium term.

Author : Ms.Sharmini Coorey,Mr.Mauro Mecagni,Mr.Erik Offerdal
Publisher : International Monetary Fund
Page : 106 pages
File Size : 43,9 Mb
Release : 1996-12
Category : Business & Economics
ISBN : UCSD:31822024139172

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Disinflation in Transition Economies by Ms.Sharmini Coorey,Mr.Mauro Mecagni,Mr.Erik Offerdal Pdf

In light of the persistence of moderate inflation in many transition economies, this paper analyzes whether inflation resulted from insufficiently tight financial policies and wage pressures or from the protracted adjustment of relative prices. Using a new database for 21 countries, the effect of relative price variability on inflation is estimated within a framework controlling for nominal and real shocks. Money and wage growth were the most important determinants of inflation; relative price variability had a sizable effect at high inflation during initial liberalization and a small effect at moderate inflation. Cost recovery may contribute to variability, particularly in the advanced stages of the transition.

Author : Ms.Ratna Sahay,Mr.Carlos A. Végh Gramont
Publisher : International Monetary Fund
Page : 74 pages
File Size : 47,8 Mb
Release : 1995
Category : Business & Economics
ISBN : UCSD:31822019113778

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Inflation and Stabilization in Transition Economies by Ms.Ratna Sahay,Mr.Carlos A. Végh Gramont Pdf

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.

Author : Mr.Stanley Fischer,Ms.Ratna Sahay,Mr.Carlos A. Végh Gramont
Publisher : International Monetary Fund
Page : 36 pages
File Size : 44,5 Mb
Release : 1996-04
Category : Business & Economics
ISBN : UCSD:31822021299821

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Stabilization and Growth in Transition Economies by Mr.Stanley Fischer,Ms.Ratna Sahay,Mr.Carlos A. Végh Gramont Pdf

This paper analyzes the growth and stabilization experience in 26 transition economies in eastern Europe, the former Soviet Union, and Mongolia for the period 1989-1994. Inflation rates have declined significantly in most countries following an inflation stabilization program. Growth resumes after stabilization occurs, typically with a lag of about two years. Reducing inflation thus appears to be a precondition for growth. An econometric analysis of the short-run determinants of inflation and growth illustrates the key roles of fixed exchange rates, improved fiscal balances, and structural reforms in spurring growth and lowering inflation, and confirms that inflation stabilization programs have been beneficial for growth even after controlling for structural reforms.

Author : Tamás Bauer,World Bank
Publisher : Unknown
Page : 290 pages
File Size : 52,8 Mb
Release : 1991
Category : Business & Economics
ISBN : STANFORD:36105041260162

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Managing Inflation in Socialist Economies in Transition by Tamás Bauer,World Bank Pdf

Author : Ben S. Bernanke,Michael Woodford
Publisher : University of Chicago Press
Page : 469 pages
File Size : 54,6 Mb
Release : 2007-11-01
Category : Business & Economics
ISBN : 9780226044736

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The Inflation-Targeting Debate by Ben S. Bernanke,Michael Woodford Pdf

Over the past fifteen years, a significant number of industrialized and middle-income countries have adopted inflation targeting as a framework for monetary policymaking. As the name suggests, in such inflation-targeting regimes, the central bank is responsible for achieving a publicly announced target for the inflation rate. While the objective of controlling inflation enjoys wide support among both academic experts and policymakers, and while the countries that have followed this model have generally experienced good macroeconomic outcomes, many important questions about inflation targeting remain. In Inflation Targeting, a distinguished group of contributors explores the many underexamined dimensions of inflation targeting—its potential, its successes, and its limitations—from both a theoretical and an empirical standpoint, and for both developed and emerging economies. The volume opens with a discussion of the optimal formulation of inflation-targeting policy and continues with a debate about the desirability of such a model for the United States. The concluding chapters discuss the special problems of inflation targeting in emerging markets, including the Czech Republic, Poland, and Hungary.

Author : Mr.Dimitri G. Demekas,Mr.Mohsin S. Khan
Publisher : International Monetary Fund
Page : 56 pages
File Size : 41,8 Mb
Release : 1991-08-01
Category : Business & Economics
ISBN : 9781451850246

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The Romanian Economic Reform Program by Mr.Dimitri G. Demekas,Mr.Mohsin S. Khan Pdf

With the start of the process of its transition to a market economy in early 1990, Romania joined the ranks of other reforming Eastern European countries. At the starting point of its reform program, however, Romania was in a deep economic and institutional crisis and had no experience in even modest attempts to reform its economy. This paper outlines the main characteristics of the Romanian economic system before the reform, and presents the evolution of the reform program, as well as its achievements in the first year or so since it was launched.

Author : Max Gillman
Publisher : Routledge
Page : 420 pages
File Size : 43,9 Mb
Release : 2009-03-23
Category : Business & Economics
ISBN : 9781134021734

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Inflation Theory in Economics by Max Gillman Pdf

These essays bring together a progression in monetary theory. The major theme that runs through all of the chapters is that in order to do monetary economics well in general equilibrium, it helps to have a good money demand underlying the theory. A proper underlying money demand sets up arguably the best foundation from which to make extensions of monetary economics from the basic model. At the same time that money demand is modelled, this also “endogenizes” the velocity of money. This has been a challenge in the literature that these essays solve and then use to extend basic neoclassical growth and business cycle theory. Solving this problem, in a way that is a natural, direct, and “micro-founded” extension of the standard monetary theory is the first major contribution of the collection. The second major contribution is the extension of the neoclassical monetary models, using this solution, to reinvigorate classic issues of monetary economics and take them to the frontier.

Author : Giovanni Andrea Cornia,Vladimir Mikhaĭlovich Popov
Publisher : Unknown
Page : 296 pages
File Size : 42,5 Mb
Release : 2001
Category : Business & Economics
ISBN : 0199242186

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Transition and Institutions by Giovanni Andrea Cornia,Vladimir Mikhaĭlovich Popov Pdf

This book is the first comprehensive assessment of the mortality crisis which has affected most economies in transition but which has remained so far largely unexplained. It reconciles long-term and short-term explanations of the crisis and makes use of special micro data-sets never used before. By providing a rigorous multidisciplinary analysis of this upsurge in mortality rates, the book hopes to contribute to the launch of vigorous policies to tackle this societal problem.

Author : Anthony T.H. Chin
Publisher : World Scientific
Page : 692 pages
File Size : 47,7 Mb
Release : 1996
Category : Business & Economics
ISBN : 9810228902

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Economic Management and Transition Towards a Market Economy by Anthony T.H. Chin Pdf

Much attention has been focused in recent years on the transformation of the economies of Eastern and Central Europe and the former Soviet Union. However, a growing demand for policy advice, technical assistance and expertise is also coming from Asian reforming countries such as China, Mongolia, Vietnam, Laos and Cambodia. In addition, business communities abroad are increasingly interested in exploring investment and marketing opportunities in these reforming countries. Such developments are too important to overlook or ignore.The transformation of socialist economies towards market-based systems entails an unusually wide range of problems. Studies of related topics are complicated by the speed of the changes and the lack of clear historical precedents. Although the structural features of Asian reforming economies are in important ways different from those of the Eastern European economies, all socialist economies share similar fundamental conditions on the eve of economic reform which raise a similar set of reform issues.This volume brings together a rich collection of expertise and information in an attempt to shed some light on the transitional process in Asia. The contributions are by no means exhaustive. However, they provide the reader and analyst with an excellent starting point to the problems and prospects which are specific to Asian transforming economies.

Author : Paul G. Hare,Junior R. Davis
Publisher : Psychology Press
Page : 506 pages
File Size : 52,5 Mb
Release : 1997
Category : Business & Economics
ISBN : 0415124344

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The Transition to the Market Economy by Paul G. Hare,Junior R. Davis Pdf

This collection of articles examines the development of one of the most significant economic transformations ever undertaken covering a wide range of countries and economic sectors

Author : Pero Maldini,Davor Paukovi?
Publisher : Routledge
Page : 216 pages
File Size : 42,5 Mb
Release : 2016-03-09
Category : Political Science
ISBN : 9781317156970

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Croatia and the European Union by Pero Maldini,Davor Paukovi? Pdf

The accession of Croatia to the EU marked the end of a long and arduous period of transition. Croatia had to meet significantly higher criteria than previous states with suspicion and concerns among existing members about further enlargement increasing. Meanwhile initially strong public support in Croatia declined as inconsistencies in EU policy, entry criteria and problems caused by the economic crisis all combined with fears about the loss of national identity and the ability to realize national interests. The successful Croatian accession to the EU in 2013 shows that, despite concerns on both sides, the EU continues to have meaning and significance and that membership remains highly desirable. Through nine mutually interrelated chapters the contributors speak not only about the political and social situation in Croatia, but also prospects for the European Union itself.