Stabilization and Growth in Transition Economies: The Early Experience
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Bibliographic Details
Main Author: Fischer, Stanley (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1996
Series:IMF Working Papers Working Paper No. 96/31
Links:http://elibrary.imf.org/view/IMF001/06472-9781451980042/06472-9781451980042/06472-9781451980042.xml
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http://elibrary.imf.org/view/IMF001/06472-9781451980042/06472-9781451980042/06472-9781451980042.xml
http://elibrary.imf.org/view/IMF001/06472-9781451980042/06472-9781451980042/06472-9781451980042.xml
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http://elibrary.imf.org/view/IMF001/06472-9781451980042/06472-9781451980042/06472-9781451980042.xml
Abstract: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
Physical Description:1 Online-Ressource (32 p)
ISBN:1451980043
9781451980042