The Effect of Incomes Policies on Inflation in Bulgaria and Poland
AbstractTransition countries, and many other countries with incomplete markets, have faced long periods with both high inflation and unemployment. Policies to reduce inflation without high unemployment include incomes policies, which were widely employed in transition countries. This paper studies the effects of incomes policies on inflation in Bulgaria and Poland in 1990-1993. The actual policies, which were complex and changing, are examined. The policies do not appear well-designed in a technical sense to reduce inflation. A time-series analysis is made which includes standard determinants of inflation including past inflation, wage increases, exchange rate changes, and monetary changes, plus a dummy for incomes policies. The regressions are fairly successful in fitting standard factors that should influence inflation, particularly the exchange rate and unemployment in Bulgaria and wages and unemployment in Poland. They find a fairly substantial inflation-reducing effect from the Bulgarian policy but no significant results from the Polish policy. Copyright Kluwer Academic Publishers 2000
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Economics of Planning.
Volume (Year): 33 (2000)
Issue (Month): 3 (October)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=113294
incomes policies; transition; Bulgaria; Poland;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Welfe, Aleksander, 1996. " The Price-Wage Inflationary Spiral in Poland," Economic Change and Restructuring, Springer, vol. 29(1), pages 33-50.
- Brian Pinto & Marek Belka & Stefan Krajewski, 1993. "Transforming State Enterprises in Poland: Evidence on Adjustment by Manufacturing Firms," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 213-270.
- Peter Zadrozny, 1997. "An Econometric Analysis of Polish Inflation Dynamics with Learning about Rational Expectations," Economic Change and Restructuring, Springer, vol. 30(2), pages 221-238, May.
- Coricelli, Fabrizio & Lane, Timothy D, 1993. "Wage Controls during the Transition from Central Planning to a Market Economy," World Bank Research Observer, World Bank Group, vol. 8(2), pages 195-210, July.
- Robert J. Gordon, 1997.
"The Time-Varying NAIRU and Its Implications for Economic Policy,"
Journal of Economic Perspectives,
American Economic Association, vol. 11(1), pages 11-32, Winter.
- Gordon, Robert J, 1996. "The Time-varying NAIRU and its Implications for Economic Policy," CEPR Discussion Papers 1492, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 1997. "The Time-Varying NAIRU and its Implications for Economic Policy," NBER Working Papers 5735, National Bureau of Economic Research, Inc.
- Kenneth J. Koford & Jeffrey B. Miller & David C. Colander, 1993. "Application of Market Anti-inflation Plans in the Transition to a Market Economy," Eastern Economic Journal, Eastern Economic Association, vol. 19(3), pages 379-393, Summer.
- Roberto Golinelli & Renzo Orsi, 1996.
"Exchange rate Inflation and Unemployment in East European Economies: the Case of Poland and Hungary,"
265, Dipartimento Scienze Economiche, Universita' di Bologna.
- Golinelli, Roberto & Orsi, Renzo, 1998. " Exchange Rate, Inflation and Unemployment in East European Economies: The Case of Poland and Hungary," Economic Change and Restructuring, Springer, vol. 31(1), pages 29-55.
- Roberto Golinelli & Renzo Orsi, . "Exchange Rate, Inflation and Unemployment in East European Economies: the Case of Poland and Hungary," Ace Project Memoranda 96/11, Department of Economics, University of Leicester.
- Jacek Osiewalski & Aleksander Welfe, .
"The Price-Wage Mechanism in Poland: An Endogenous Switching Model,"
Ace Project Memoranda
96/2, Department of Economics, University of Leicester.
- Osiewalski, Jacek & Welfe, Aleksander, 1997. " The Price-Wage Mechanism in Poland: An Endogenous Switching Model," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 205-20.
- Jacek Osiewalski & Aleksander Welfe, 1997. "The Price-Wage Mechanism in Poland: An Endogenous Switching Model," Economic Change and Restructuring, Springer, vol. 30(2), pages 205-220, May.
- Seidman, Laurence S, 1979. "The Role of a Tax-Based Incomes Policy," American Economic Review, American Economic Association, vol. 69(2), pages 202-06, May.
- Commander, Simon & Coricelli, Fabrizio, 1992. "Price-Wage Dynamics and Inflation in Socialist Economies: Empirical Models for Hungary and Poland," World Bank Economic Review, World Bank Group, vol. 6(1), pages 33-53, January.
- Derek C Jones & Mieke Meurs, 1991. "Worker Participation and Worker Self-Management in Bulgaria," Comparative Economic Studies, Palgrave Macmillan, vol. 33(4), pages 47-82, December.
- Sachs, Jeffrey D, 1992. " The Economic Transformation of Eastern Europe: The Case of Poland," Economic Change and Restructuring, Springer, vol. 25(1), pages 5-19.
- Zadrozny, Peter A, 1997. " An Econometric Analysis of Polish Inflation Dynamics with Learning about Rational Expectations," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 221-38.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.