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On the Role of Wages in the Ukrainian Transition Process: An Empirical Investi¬gation

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Author Info
Fazio, Gioacchino () (Facoltà di Scienze della Formazione -Università di Palermo)
Hueber, Oliver () (Faculté de Droit, des Sciences Économiques et de Gestion (Faculty of Law, Economics and Management) Université de Nice-Sophia Antipolis)

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Abstract

This paper looks for answers to the following questions: Why did one of the most prosperous republics of the former USSR suffer from both persistent and high inflation during the first four years of its young existence? Flow could the Ukrainians efficiently put an end to the skyrocketing of prices in the early months of 1996? With the support of a cointegration test, we show that between January 1992 and November 1995 Ukraine was faced with a complex monetary regime in which wages were the economic variable through which most of the inflationary pressures were transmitted, either directly or indirectly. Since the beginning of 1996, the new monetary regime reduced inflation but wage and pension arrears have quickly increased. We outline possible remedies for this situation that is not sustainable in the long term.

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Publisher Info
Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

Volume (Year): 51 (1998)
Issue (Month): 4 ()
Pages: 517-529
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Handle: RePEc:ris:ecoint:0290

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Find related papers by JEL classification:
C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

References listed on IDEAS
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.:

  1. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March. [Downloadable!] (restricted)
  2. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September. [Downloadable!] (restricted)
  3. Cukierman, Alex & Edwards, Sebastian & Tabellini, Guido, 1992. "Seigniorage and Political Instability," American Economic Review, American Economic Association, vol. 82(3), pages 537-55, June. [Downloadable!] (restricted)
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  4. Stock, James H, 1987. "Asymptotic Properties of Least Squares Estimators of Cointegrating Vectors," Econometrica, Econometric Society, vol. 55(5), pages 1035-56, September. [Downloadable!] (restricted)
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