Price Reform and Durable Goods in the Transition to a Market Economy

June 1, 1993

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Format: Chicago

Pierre-Richard Agénor. Price Reform and Durable Goods in the Transition to a Market Economy, (USA: International Monetary Fund, 1993) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper examines the short- and long-term effects of price liberalization in a reforming socialist economy. The analysis is based on an optimizing framework that highlights hoarding behavior and the existence of parallel goods markets. The behavior of official and parallel market prices, stock of durables, and the velocity of money in the transition period between reform announcement and reform implementation is characterized, in the presence and absence of uncertainty about the transition date.

Subject: Asset prices, Financial institutions, Financial services, Inflation, Price controls, Prices, Real interest rates, Stocks

Keywords: Asset prices, Durable goods, Eastern Europe, Excess demand, Free market, Inflation, Liberalization program, Market price, Nominal interest rate, Price controls, Price liberalization, Real interest rates, Socialist economy, Stock of durables, Stocks, WP

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/047
Stock No:

WPIEA0471993
ISBN:

9781451972917
ISSN:

1018-5941

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