Interenterprise Arrears in Post-Communist Economies
Summary:
The reasons for the growth of interenterprise debt are analyzed. It is suggested that it results mainly from the appearance of normal trade credit in a liberalized economy, and when a monetary squeeze is part of a stabilization attempt that is not credible. In the latter case, the result can be a sharp fall in output. Non-market and market solutions to this problem are analyzed, and the advantages of the latter over the former are stressed.
Series:
Working Paper No. 1994/043
Subject:
Bank credit Banking Central banks Credit Currencies Currency issuance Monetary base Money
English
Publication Date:
April 1, 1994
ISBN/ISSN:
9781451975109/1018-5941
Stock No:
WPIEA0431994
Pages:
42
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