The end of moderate inflation in three transition economies?
Abstract
This paper examines the ending of moderate rates of inflation in three transition economies, the Czech Republic, Hungary and Poland at the end of 1998. We argue that the institutions for the conduct of monetary policy in these countries were relatively weak and that monetary policy was unsupported by fiscal policy and hampered by multiple objectives. Using a VAR model of inflation, we show that, under a variety of assumptions, foreign prices and the persistence of inflation are the key determinants of inflation in these countries. From this finding we conclude that the end of moderate inflation in the Czech Republic, Hungary and Poland was largely due to the decline in import prices in the second half of 1998, and thus it may be a temporary phenomenon.Download Info
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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1999-003.Length:
Date of creation: 1999
Date of revision:
Handle: RePEc:fip:fedlwp:1999-003
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Keywords: Monetary policy ; Fiscal policy ; Inflation (Finance) ; Czech Republic ; Hungary ; Poland;Other versions of this item:
- Brada, Josef C. & Kutan, Ali M., 1999. "The end of moderate inflation in three transition economies?," ZEI Working Papers B 21-1999, ZEI - Center for European Integration Studies, University of Bonn.
- Josef Brada & Ali Kutan, 1999. "The End of Moderate Inflation in Three Transition Economies?," William Davidson Institute Working Papers Series 230, William Davidson Institute at the University of Michigan.
- Josef C. Brada & Ali M. Kutan, 2002. "The End of Moderate Inflation in Three Transition Economies?," William Davidson Institute Working Papers Series 433, William Davidson Institute at the University of Michigan.
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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