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Some Specific Features of Inflation in a Heavily-indebted Socialist Country

In: The Challenge of Simultaneous Economic Relations with East and West

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  • Neven Mates

Abstract

Problems of simultaneous economic relations of individual countries with the ‘West’ and the ‘East’ have until the 1980s mainly been analysed in the sphere of visible and invisible trade. In this chapter, the sphere of analysis is the financial system. With respect to Yugoslavia, it will be shown that the institutional weaknesses of the domestic financial system, which is heavily burdened with debt to Western countries and at the same time has periodically significant balance-of-trade claims on Eastern countries, constitute one of the basic causes of inflation.

Suggested Citation

  • Neven Mates, 1990. "Some Specific Features of Inflation in a Heavily-indebted Socialist Country," Palgrave Macmillan Books, in: Michael Marrese & Sándor Richter (ed.), The Challenge of Simultaneous Economic Relations with East and West, chapter 11, pages 174-191, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11409-2_11
    DOI: 10.1007/978-1-349-11409-2_11
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