Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results
Summary:
In countries such as the Soviet Union, where wealth is mainly stored in monetary assets, the behavior of the money to income ratio is a poor indicator of the growth of undesired monetary balances (monetary overhang). In those countries a monetary overhang is primarily a wealth overhang, which has to be analyzed by evaluating deviations of actual from desired wealth holdings; this requires an empirical analysis of consumption and saving decisions. In this paper, we present estimates of a consumption function for the Soviet Union, from which an evaluation of the monetary overhang existing at the end of 1990 is derived.
Series:
Working Paper No. 1991/055
Subject:
Consumption Disposable income Household consumption Income Inflation National accounts Prices
Notes:
Also published in Staff Papers, Vol. 39, No. 2, June 1992.
English
Publication Date:
June 1, 1991
ISBN/ISSN:
9781451847550/1018-5941
Stock No:
WPIEA0551991
Pages:
62
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