Inflation in Transition Economies: How Much? and Why?

Author/Editor:

Atish R. Ghosh

Publication Date:

July 1, 1997

Electronic Access:

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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:

Following very high inflation rates at the beginning of the reform process, most transition countries have succeeded in lowering their inflation to more moderate rates. Inflation rates in the Baltics, Russia, and other countries of the former Soviet Union are now typically in the range of 10–60 percent. This essay examines whether a further reduction in inflation may be necessary. It concludes that low inflation may be important for achieving remonetization of the economy and sustained output growth.

Series:

Working Paper No. 1997/080

Subject:

English

Publication Date:

July 1, 1997

ISBN/ISSN:

9781451955569/1018-5941

Stock No:

WPIEA0801997

Pages:

28

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