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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.

Suggested Citation

  • Marek Dabrowski, 1999. "Disinflation, Monetary Policy and Fiscal Constraints. Experience of the Countries in Transition," CASE Network Reports 0016, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnrepo:0016
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    Cited by:

    1. Komulainen, Tuomas & Pirttila, Jukka, 2002. "Fiscal Explanations for Inflation: Any Evidence from Transition Economies?," Economic Change and Restructuring, Springer, vol. 35(3), pages 293-316.
    2. Dvorsky, Sandra, 2000. "Measuring central bank independence in selected transition countries and the disinflation process," BOFIT Discussion Papers 13/2000, Bank of Finland, Institute for Economies in Transition.
    3. repec:zbw:bofitp:2000_013 is not listed on IDEAS
    4. Marek Dabrowski, 2001. "Currency Crises in Emerging Markets - Selected Comparative Studies," CASE Network Reports 0041, CASE-Center for Social and Economic Research.
    5. Dvorsky, Sandra, 2000. "Measuring central bank independence in selected transition countries and the disinflation process," BOFIT Discussion Papers 13/2000, Bank of Finland Institute for Emerging Economies (BOFIT).
    6. Komulainen, Tuomas & Pirttila, Jukka, 2002. "Fiscal Explanations for Inflation: Any Evidence from Transition Economies?," Economic Change and Restructuring, Springer, vol. 35(3), pages 293-316.
    7. repec:zbw:bofitp:2000_011 is not listed on IDEAS
    8. Marek Dabrowski and Radzislawa Gortat, 2002. "Political and Economic Institutions, Growth and Poverty – Experience of Transition Countries," Human Development Occasional Papers (1992-2007) HDOCPA-2002-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

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