| Description |
1 online resource (iii, 23 pages) : illustrations |
| Series |
IMF working paper ; WP/92/69 |
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IMF working paper ; WP/92/69.
|
| Summary |
During the transition from a centrally planned economy to a market economy, many countries seem to have experienced some degree of macroeconomic instability. This paper attempts to provide a theoretical explanation of this phenomenon. The paper develops a simple monetary model and shows how macroeconomic stability can be achieved in a rigid centrally planned economy, despite the inherent structural imbalances and irrational price system. On the other hand, the study shows that without hardening enterprise budget constraints, wage and price decontrol tends to destabilize the economy and may lead to persistent budget deficits and inflation. The paper also proveides a rigorous analysis of household savings and money demand in a shortage economy, and clarifies the somewhat confusing concept of "monetary overhang" in the literature |
| Notes |
Caption title |
|
At head of title: International Monetary Fund, Research Department |
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"August 1992." |
| Bibliography |
Includes bibliographical references (pages 22-23) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
English |
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Print version record |
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digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Central planning -- Econometric models
|
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Money -- Mathematical models
|
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Scarcity -- Econometric models
|
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Central planning -- Econometric models.
|
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Money -- Mathematical models.
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| Form |
Electronic book
|
| Author |
International Monetary Fund. Research Department, issuing body.
|
| ISBN |
1455202967 |
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9781455202966 |
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1462312667 |
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9781462312665 |
|
