Sustained inflation in response to price liberalization
AbstractThe author demonstrates that sustained inflation is a predictable response to price liberalization in the countries of the former Soviet Union. The author models the phenomenon in a dynamic macroeconomic framework,and demonstrates the immediate price jump followed by sustained inflation that has characterized the transitional economies of the former Soviet Union. The author supports the theoretical derivation with a simulation exercise that demonstrates the scope of sustained inflation for specific parameters.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1368.
Date of creation: 31 Oct 1994
Date of revision:
Markets and Market Access; Economic Theory&Research; Environmental Economics&Policies; Banks&Banking Reform; Access to Markets;
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