## Inflation in Transition Economies: How Much? and Why?

_IMF Working Papers, July 1, 1997_

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## Bibliographic details
- Authors: Atish R. Ghosh
- Published: July 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451955569.001

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### Summary
- Author: Atish R. Ghosh
- Publication date: July 1, 1997
- Series: Working Paper No. 1997/080
- Issue: 080
- Volume: 1997
- Pages: 28
- DOI: https://doi.org/10.5089/9781451955569.001
- ISSN: 1018-5941
- ISBN: 9781451955569
- Stock No: WPIEA0801997
- Core 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.
  - The essay examines whether a further reduction in inflation may be necessary and concludes that low inflation may be important for achieving remonetization of the economy and sustained output growth.

### Key findings
- Inflation trajectory:
  - Transition countries experienced very high inflation at the start of reforms, later reduced to more moderate levels.
  - Current typical inflation rates in the Baltics, Russia, and other former Soviet Union countries: 10–60 percent.
- Relationship between inflation and macro outcomes:
  - Further reduction in inflation may be necessary.
  - Low inflation is concluded to be potentially important for:
    - Achieving remonetization of the economy.
    - Sustaining output growth.

### Subject areas and keywords
- Subjects:
  - Demand for money
  - Expenditure
  - Inflation
  - Monetary base
  - Money
  - Prices
  - Production
  - Production growth
  - Public expenditure review
- Keywords:
  - Baltics
  - Demand for money
  - Eastern Europe
  - GDP
  - Growth
  - Inflation
  - inflation elasticity
  - inflation rate
  - inflation stabilization
  - Monetary base
  - monetization
  - monetization Pr
  - Production growth
  - Public expenditure review
  - rate of inflation
  - Transition Economies
  - transition economy
  - WP

### Policy implications and analysis emphasis
- Policy implication highlighted:
  - Reducing inflation further may be required to support remonetization and sustained output growth in transition economies.
- Analytical emphasis:
  - The essay explores the necessity and benefits of lower inflation within the context of post-reform transition economies, focusing on monetary variables and production/growth outcomes.

*IMF Working Paper: Atish R. Ghosh, "Inflation in Transition Economies: How Much? and Why?", July 1, 1997, Working Paper No. 1997/080.*

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## Content in this bundle

- **Inflation in Transition Economies: How Much? and Why? -WP/97/80**
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