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The Georgian Hyperinflation and Stabilization


  • Jian-Ye Wang


This paper anlayzes the Georgian hyperinflation of 1993-94, which featured endogenous fiscal expenditures and the money supply, depreciation, and currency substitution. Hyperinflation was stopped by removing generalized consumer subsidies and tightening of monetary policy, and not by a sudden rush of credibility or imposition of an exchange rate anchor. A de facto exchange rate anchor served ex post as a vehicle for building credibility, which ensured a dramatic reversal of currency substitution when the currency reform was implemented. The paper also discusses the relatively rapid output recovery in Georgia.

Suggested Citation

  • Jian-Ye Wang, 1999. "The Georgian Hyperinflation and Stabilization," IMF Working Papers 99/65, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:99/65

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    References listed on IDEAS

    1. Robin D Kibuka, 2007. "Mainstreaming Statistics in the Poverty Reduction Strategy Approach to Provide for More Effective Technical Assistance; Some Experience at the IMF," IMF Working Papers 07/255, International Monetary Fund.
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    Cited by:

    1. Wojciech Maliszewski, 2003. "Modeling Inflation in Georgia," IMF Working Papers 03/212, International Monetary Fund.


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