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Disinflation, Monetary Policy and Fiscal Constraints. Experience of the Countries in Transition

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  • Marek Dabrowski

Abstract

Most economies of Central and Eastern Europe (CEE) and the former Soviet Union (FSU) experienced a very high inflation or even hyperinflation in the onset of the transition process. Despite the package of institutional, regulatory and structural reforms that made Poland a leader of economic transition among post-communist countries, the disinflation process in the country was not fast and presented a lot of signs of inflationary inertia. This paper attempts to answer why the pace of disinflation in Poland, considered as evident reform leader in the all region has been much slower than in some other countries, who were considered sometimes less advanced in transition process. To answer this question, the study presents a comparative cross-countries analysis of disinflationary process in post-communist countries. The study covers the period of 1990-1997 with more focus on 1993-1997. The choice for timeframe is grounded on availability of statistics and capability of the post-communist countries to run fully independent monetary policy.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Reports with number 0016.

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Length: 116 Pages
Date of creation: 1999
Date of revision:
Handle: RePEc:sec:cnrepo:0016

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Keywords: Disinflation; transition economies; monetary policy;

References

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Cited by:
  1. repec:wii:bpaper:bowp:016 is not listed on IDEAS
  2. Komulainen, Tuomas & Pirttila, Jukka, 2002. " Fiscal Explanations for Inflation: Any Evidence from Transition Economies?," Economic Change and Restructuring, Springer, Springer, vol. 35(3), pages 293-316.
  3. Marek Dabrowski and Radzislawa Gortat, 2002. "Political and Economic Institutions, Growth and Poverty – Experience of Transition Countries," Human Development Occasional Papers (1992-2007), Human Development Report Office (HDRO), United Nations Development Programme (UNDP) HDOCPA-2002-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  4. Marek Dabrowski, 2001. "Currency Crises in Emerging Markets - Selected Comparative Studies," CASE Network Reports, CASE-Center for Social and Economic Research 0041, CASE-Center for Social and Economic Research.

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