Stabilization programs in Eastern Europe : a comparative analysis of the Polish and Yugoslav programs of 1990
The authors compare the implementation of two apparently similar stabilization programs by two reforming socialist countries, launched two weeks apart (Dec. 1989 in Yugoslavia and Jan. 1990 in Poland). They investigate possible differences underlying the apparently similar programs that may account for better initial performance of Yugoslavia's program (a sharper reduction of inflation with smaller losses in output). The authors identify significant differences in initial conditions in the two countries as well as the sequence and degree of some policy measures. The differences may explain the difference in the early results. They also identify the most important issues the two countries must address in the second stage of reform. These include the unfreezing of nominal variables and resolving the critical structural problems affecting both economies. The authors conclude that the microfoundations of socialist and market economies are clearly different. These differences imply that in socialist economies the case for including incomes policy in stabilization programs may be stronger.
|Date of creation:||31 Jul 1991|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Bruno & Stanley Fischer, 1987. "Seigniorage, Operating Rules and the High Inflation Trap," NBER Working Papers 2413, National Bureau of Economic Research, Inc.
- J. Saul Lizondo & Peter J. Montiel, 1989. "Contractionary Devaluation in Developing Countries: An Analytical Overview," IMF Staff Papers, Palgrave Macmillan, vol. 36(1), pages 182-227, March.
- Rocha, Roberto de Rezende, 1991. "Inflation and stabilization in Yugoslavia," Policy Research Working Paper Series 752, The World Bank.
- Lucas, Robert E, Jr, 1973. "Some International Evidence on Output-Inflation Tradeoffs," American Economic Review, American Economic Association, vol. 63(3), pages 326-34, June.
- Cohen, Daniel, 1988. "The Management of the Developing Countries' Debt: Guidelines and Applications to Brazil," World Bank Economic Review, World Bank Group, vol. 2(1), pages 77-103, January.
- Rudiger Dornbusch & Stanley Fischer, 1986.
"Stopping hyperinflations past and present,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 1-47, March.
- Commander, Simon & Coricelli, Fabrizio, 1990. "The macroeconomics of price reform in socialist countries : a dynamic framework," Policy Research Working Paper Series 555, The World Bank.
- Liviatan, Nissan, 1988. "Israel's stabilization program," Policy Research Working Paper Series 91, The World Bank.
- Kolodko, Grzegorz W & McMahon, Walter W, 1987. "Stagflation and Shortageflation: A Comparative Approach," Kyklos, Wiley Blackwell, vol. 40(2), pages 176-97.
- Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
- Frydman, Roman & Wellisz, Stanislaw, 1990. "The Ownership-Control Structure And The Behavior Of Polish Enterprises During The 1990 Reforms: Macroeconomic Measures And Microecconomic Response," Working Papers 90-50, C.V. Starr Center for Applied Economics, New York University.
- Taylor, John B, 1979. "Staggered Wage Setting in a Macro Model," American Economic Review, American Economic Association, vol. 69(2), pages 108-13, May.
- Peter J. Montiel, 1989. "Empirical Analysis of High-Inflation Episodes in Argentina, Brazil, and Israel," IMF Staff Papers, Palgrave Macmillan, vol. 36(3), pages 527-549, September.
- David Lipton & Jeffrey D. Sachs, 1990. "Creating a Market Economy in Eastern Europe: The Case of Poland," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1), pages 75-148.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:732. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.