{
  "title": "Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results",
  "publication": "IMF Working Papers, June 1, 1991",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/forced-savings-and-repressed-inflation-in-the-soviet-union-some-empirical-results-933",
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  "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).",
  "sections": [
    {
      "heading": "Authors and Publication",
      "content": "- By Mario I. Bléjer, Carlo Cottarelli\n- Publication date: June 1, 1991\n- Series: Working Paper No. 1991/055\n- Issue: 055\n- Pages: 62\n- DOI: https://doi.org/10.5089/9781451847550.001\n- ISBN: 9781451847550\n- ISSN: 1018-5941\n- Stock No: WPIEA0551991"
    },
    {
      "heading": "Research Question and Motivation",
      "content": "- 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).\n- A monetary overhang in such contexts is primarily a wealth overhang, requiring analysis of deviations of actual from desired wealth holdings.\n- Addressing this requires an empirical analysis of consumption and saving decisions."
    },
    {
      "heading": "Methodology",
      "content": "- Presents estimates of a consumption function for the Soviet Union.\n- Empirical analysis focuses on consumption and saving behavior to evaluate wealth/monetary overhang."
    },
    {
      "heading": "Key Findings and Results",
      "content": "- The paper derives an evaluation of the monetary overhang existing at the end of 1990 from the estimated consumption function.\n- Subject areas covered: Consumption, Disposable income, Household consumption, Income, Inflation, National accounts, Prices.\n- Keywords used in the analysis include: consumer goods; Consumption; consumption behavior; consumption expenditure; Disposable income; equation C; excess demand; Household consumption; Income; Inflation; liberalization policy; price level; price liberalization; round price effect; saving propensity; wealth overhang; WP."
    },
    {
      "heading": "Policy-Relevant Insights",
      "content": "- Because monetary overhang in the Soviet Union is primarily a wealth overhang, policy analysis should focus on consumption and saving behavior rather than solely on money-to-income ratios.\n- Evaluations of price liberalization and liberalization policy effects on consumption and saving are central to understanding repressed inflation dynamics.\n\nSource: IMF Working Papers, \"Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results\" by Mario I. Bléjer and Carlo Cottarelli (June 1, 1991), Working Paper No. 1991/055.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/forced-savings-and-repressed-inflation-in-the-soviet-union-some-empirical-results-933"
    }
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    "Authors: Mario I. Bléjer, Carlo Cottarelli",
    "Published: June 1, 1991",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451847550.001",
    "By Mario I. Bléjer, Carlo Cottarelli",
    "Publication date: June 1, 1991",
    "Series: Working Paper No. 1991/055",
    "Issue: 055",
    "Pages: 62",
    "DOI: https://doi.org/10.5089/9781451847550.001",
    "ISBN: 9781451847550",
    "ISSN: 1018-5941",
    "Stock No: WPIEA0551991",
    "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).",
    "A monetary overhang in such contexts is primarily a wealth overhang, requiring analysis of deviations of actual from desired wealth holdings.",
    "Addressing this requires an empirical analysis of consumption and saving decisions.",
    "Presents estimates of a consumption function for the Soviet Union.",
    "Empirical analysis focuses on consumption and saving behavior to evaluate wealth/monetary overhang.",
    "The paper derives an evaluation of the monetary overhang existing at the end of 1990 from the estimated consumption function.",
    "Subject areas covered: Consumption, Disposable income, Household consumption, Income, Inflation, National accounts, Prices.",
    "Keywords used in the analysis include: consumer goods; Consumption; consumption behavior; consumption expenditure; Disposable income; equation C; excess demand; Household consumption; Income; Inflation; liberalization policy; price level; price liberalization; round price effect; saving propensity; wealth overhang; WP.",
    "Because monetary overhang in the Soviet Union is primarily a wealth overhang, policy analysis should focus on consumption and saving behavior rather than solely on money-to-income ratios.",
    "Evaluations of price liberalization and liberalization policy effects on consumption and saving are central to understanding repressed inflation dynamics."
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