Year: 1996
Type: article
Abstract: The authors analyze the growth and stabilization experience in twenty-six transition economies in Eastern Europe, the former Soviet Union, and Mongolia for the period 1989-94. Inflation rates have declined significantly in most countries following an inflation stabilization program. Typically, stabilization has been followed by growth within two years; and growth does not occur without stabilization. Reducing inflation thus appears to be a precondition for growth. An econometric analysis of the short-run determinants of inflation and growth illustrates the key roles of fixed exchange rates, improved fiscal balances, and structural reforms in spurring growth and lowering inflation.
DOI: 10.1257/jep.10.2.45
Authors: Stanley Fischer, Ratna Sahay, Carlos A Végh
Language: English
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2103304624