Interenterprise Arrears in Post-Communist Economies
April 1, 1994
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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.
Subject: Bank credit, Banking, Central banks, Credit, Currencies, Currency issuance, Monetary base, Money
Keywords: Bank credit, clearing of IED, Credit, Currencies, Currency issuance, downstream enterprise, enterprise assets, IED expansion, IED growth, IED market, IED problem, IED-price-IED bubble, M ratio, Monetary base, real value, upstream enterprise, velocity of circulation, WP
Pages:
42
Volume:
1994
DOI:
Issue:
043
Series:
Working Paper No. 1994/043
Stock No:
WPIEA0431994
ISBN:
9781451975109
ISSN:
1018-5941
