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Application of Market Anti-inflation Plans in the Transition to a Market Economy

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Author Info

  • Kenneth J. Koford

    (University of Delaware
    Bard College)

  • Jeffrey B. Miller

    (University of Delaware)

  • David C. Colander

    (Middlebury College)

Abstract

How can the former socialist countries' transition to a market economy be made less painful and more effective? We propose the use of incentive policies to stabilize prices and output. This would reduce former planned economies' tendency for output to fall and prices to rise as firms and workers take advantage of their market power. The policy allows firms individual pricing freedom while giving assurance that the price level will be stable. It also can break the vicious circle of reduced aggregate output by setting fixed level of output.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume19/V19N3P379_393.pdf
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Bibliographic Info

Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 19 (1993)
Issue (Month): 3 (Summer)
Pages: 379-393

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Handle: RePEc:eej:eeconj:v:19:y:1993:i:3:p:379-393

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Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
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Web page: http://www.ramapo.edu/eea/journal.html
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Related research

Keywords: Socialists;

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  1. Lerner, Abba & Colander, David, 1982. "Anti-Inflation Incentives," Kyklos, Wiley Blackwell, vol. 35(1), pages 39-52.
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Cited by:
  1. Tihomir Enev & Kenneth Koford, 2000. "The Effect of Incomes Policies on Inflation in Bulgaria and Poland," Economic Change and Restructuring, Springer, vol. 33(3), pages 141-169, October.

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