Advanced Search
MyIDEAS: Login

Exchange Rate Regime and Disinflation in the Transition: the Experience of the Pre-announced Crawling Peg in Hungary

Contents:

Author Info

  • Balàzs Égert

Abstract

[eng] Despite the fact that Hungary did not opt for a shock therapy at the beginning of the 1990s to turn its planned economy into a market economy, the so-called gradualist transition gave rise to a brutal economic and social shock. In order to prevent the crisis, the government launched a massive, heterodox stabilisation programme. It consisted of the following measures : an exceptional devaluation of the Hungarian forint by 9% against the currency basket, the introduction of a pre-announced crawling peg system, which replaced a fixed exchange rate regime with discretionary adjustment, a temporary 8 per cent import surcharge, a strict wage control, a sharp reduction of public expenditure and a broad range of structural measures. This article presents the Hungarian transition examining the disinflation, monetary and interest rate policy in this country. . JEL classifications : F31, P20 [fre] Régime de change et désinflation dans la transition : l’expérience du système de parité à crémaillère pré-annoncée en Hongrie . En dépit du fait que la Hongrie n’ait pas opté pour une thérapie de choc au début des années 1990 afin de transformer son économie planifiée en économie de marché, le processus de transition dit gradualiste a provoqué un choc économique et social brutal. Afin de prévenir la crise, le gouvernement a lancé un vaste programme de stabilisation de caractère hétérodoxe comportant : la dévaluation exceptionnelle de 9 % du forint hongrois par rapport au panier de devises en vigueur, l’instauration d’un système de parité à crémaillère avec annonce préalable, la surtaxe à l’importation de 8 % de caractère temporaire, la stricte modération des salaires, la diminution radicale des dépenses publiques et un large éventail de mesures structurelles. Cet article tente ainsi d’analyser la transition hongroise en examinant la stratégie de désinflation, la politique de change et de taux d’intérêt de ce pays. . Classification JEL : F31, P20

Download Info

If 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.
File URL: http://www.persee.fr/web/revues/home/prescript/article/ecofi_1767-4603_2001_hos_6_1_4567
Download Restriction: no

File URL: http://www.persee.fr/articleAsPDF/ecofi_1767-4603_2001_hos_6_1_4567/ecofi_1767-4603_2001_hos_6_1_4567.pdf?mode=light
Download Restriction: no

Bibliographic Info

Article provided by Programme National Persée in its journal Revue d'économie financière (English ed.).

Volume (Year): 6 (2001)
Issue (Month): 1 ()
Pages: 361-379

as in new window
Handle: RePEc:prs:recofi:ecofi_1767-4603_2001_hos_6_1_4567

Contact details of provider:
Web page: http://www.persee.fr/web/revues/home/prescript/revue/ecofi

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:prs:recofi:ecofi_1767-4603_2001_hos_6_1_4567. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Equipe PERSEE).

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.