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Forced Savings and Repressed Inflation in the Soviet Union; Some Empirical Results

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  • Mario I. Bléjer
  • Carlo Cottarelli

Abstract

In countries such as the Soviet Union, where wealth is mainly stored in monetary assets, the behavior of the money to income ratio is a poor indicator of the growth of undesired monetary balances (monetary overhang). In those countries a monetary overhang is primarily a wealth overhang, which has to be analyzed by evaluating deviations of actual from desired wealth holdings; this requires an empirical analysis of consumption and saving decisions. In this paper, we present estimates of a consumption function for the Soviet Union, from which an evaluation of the monetary overhang existing at the end of 1990 is derived.

Suggested Citation

  • Mario I. Bléjer & Carlo Cottarelli, 1991. "Forced Savings and Repressed Inflation in the Soviet Union; Some Empirical Results," IMF Working Papers 91/55, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:91/55
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    Cited by:

    1. Kim, Byung Yeon, 1997. "Soviet Household Saving Function," Economic Change and Restructuring, Springer, pages 181-203.
    2. Filippov, Mikhail G, 2002. "Russian Voting and the Initial Economic Shock of Hyperinflation," Public Choice, Springer, vol. 111(1-2), pages 73-104, March.
    3. Rafal Antczak & Marek Dabrowski, 1995. "Economic Transition in Russia, the Ukraine and Belarus in Comparative Perspective," CASE Network Studies and Analyses 0050, CASE-Center for Social and Economic Research.
    4. Michael Alexeev, 1992. "Saving Behavior And Soviet Reform," Contemporary Economic Policy, Western Economic Association International, vol. 10(3), pages 39-48, July.
    5. Kim, Byung-Yeon, 1999. "The Income, Savings, and Monetary Overhang of Soviet Households," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 644-668, December.

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