Disinflation in Transition Economies
Disinflation in Transition Economies

Author: Marek Dabrowski

Publisher: Central European University Press

Published: 2003-01-01

Total Pages: 413

ISBN-13: 963386562X

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The authors of this outstanding scholarly work analyze the dynamics of disinflation in transition economies in Central and Eastern Europe. The volume covers all the key factors of this process: changes in money supply and money demand; exchange rate policy; currency crisis; fiscal policy; legal status of central banks; monetary policy strategy; changes in relative prices and changes in nominal and real wages. The book contains 13 chapters related to various aspects of disinflation and covering different sets of transition countries depending on their relevance to the analyzed topic and data availability.

Supply-Side Effects of Disinflation Programs
Supply-Side Effects of Disinflation Programs

Author: Mr.Jorge Roldos

Publisher: International Monetary Fund

Published: 1994-07-01

Total Pages: 36

ISBN-13: 1451954425

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This paper focuses on the short-run and long-run supply-side effects of disinflation programs in a two-sector economy. Fixing the exchange rate reduces the wedge between the return on foreign assets and that on domestic capital, leading to an increase in the latter. After an initial real exchange rate appreciation and increase in the production of nontradables—due to a consumption boom—the new capital is gradually installed in the tradable sector. During this transitional period, further real appreciation takes place—as the expansion of the tradable sector pulls labor away from the nontradable sector—together with investment-driven deficits in the current account. We conclude that when appreciation and deficits are due to supply-side rigidities, rather than to credibility and/or price stickiness, no further policies (i.e., capital controls, incomes policies) are advisable.

Stabilization and Growth in Transition Economies
Stabilization and Growth in Transition Economies

Author: Mr.Stanley Fischer

Publisher: International Monetary Fund

Published: 1996-04-01

Total Pages: 32

ISBN-13: 1451980043

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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.

International Economic Policy Review, Volume 1
International Economic Policy Review, Volume 1

Author: Mr.Paul R Masson

Publisher: International Monetary Fund

Published: 1999-09-28

Total Pages: 174

ISBN-13: 9781557758644

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This series aims to make available to the general public and to economic policy practitioners, a selection of policy papers prepared by the staff of the International Monetary Fund. Papers in the International Economic Policy Review will offer specific policy-relevant analysis, but at a relatively non-technical level. These papers are intended to provide analytical background for IMF-supported programs and more generally to shed light on a range of policy choices facing ministries and central banks.

Supply-Side Effects of Disinflation Programs
Supply-Side Effects of Disinflation Programs

Author: Jorge Roldós

Publisher:

Published: 2006

Total Pages: 36

ISBN-13:

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This paper focuses on the short-run and long-run supply-side effects of disinflation programs in a two-sector economy. Fixing the exchange rate reduces the wedge between the return on foreign assets and that on domestic capital, leading to an increase in the latter. After an initial real exchange rate appreciation and increase in the production of nontradables--due to a consumption boom--the new capital is gradually installed in the tradable sector. During this transitional period, further real appreciation takes place--as the expansion of the tradable sector pulls labor away from the nontradable sector--together with investment-driven deficits in the current account. We conclude that when appreciation and deficits are due to supply-side rigidities, rather than to credibility and/or price stickiness, no further policies (i.e., capital controls, incomes policies) are advisable.

Moderate Inflation
Moderate Inflation

Author: Mr.Carlo Cottarelli

Publisher: International Monetary Fund

Published: 1998-07-01

Total Pages: 300

ISBN-13: 9781557756992

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Many countries, including several transition economies, have in the last few years recorded a sharp decline in inflation, but have been unable to bring inflation down to lower single digits or to achieve price stability. In these countries, inflation has stabilized at moderate levels, with further progress becoming seemingly more difficult. What are the problems created by moderate inflation? What is the appropriate speed of disinflation? These and other issues related to disinflation in transition economies are taken up in this book, edited by Carlo Cottarelli and Gyorgy Szapáry.