Establishing monetary stability in emerging market economies
There has been fierce debate about the optimal sequencing of economic reforms in emerging market economics. Many economists argue that for market-oriented systems to operate effectively, a reasonable degree of monetary stability is necessary. Rampant inflation, a common challenge for emerging economies, greatly reduces the chances that market-oriented reforms will be successful. In this comprehensive volume, a group of policy-oriented economists from North America, Europe, and the former Soviet Union explore the causes of monetary instability in reforming economies and evaluate alternative institutional mechanisms designed to reduce inflationary pressures.
Considering the latest theoretical and empirical researchas well as the experiences of former Communist countries, including Russia and the erstwhile Soviet republics - the contributors view inflation as a political issue and make a case for the creation of strong political institutions. They argue that although government actions that stimulate inflation tend to have low costs or even benefits in the short run, they impose heavy costs on the economy in the longer term. Consequently, there is a strong need to develop institutional mechanisms to help ensure that decisionmakers place appropriate emphasis on the long-run consequences of policy actions.
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The High Costs of Monetary Instability Richard C K Burdekin
The Importance of Budget
Inflation and Optimal Seigniorage in the CIS and Eastern
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16 Less 23 Less 49 Less analysis assets Banaian Bank of Hungary Bank of Latvia Bank of Russia bank's banking system Belarus budget deficit central bank independence centrally planned economies commercial banks costs credit crunch currency board Czech Republic Czechoslovakia debt developing countries discussion Eastern Europe economists Emerging Market Economies enterprises estimates Estonia exchange rate fiscal foreign exchange funds Gerashchenko goal government's governor growth high inflation Hungary hyperinflation increase industrial countries inflation rates inflationary institutions interest rates International issue Kazakhstan Kugler Kyrgyzstan Latvia legislation loans macroeconomic market economy monetary authorities monetary policy monetary stability money supply National Bank optimal inflation output percent of GDP Poland Political Economy political extraction political penetration price stability problems production rates of inflation reduce reform regime relative political revenues ruble zone Russian central bank Russian ruble sector seigniorage Siklos Soviet Union target Thomas trade transitional economies Wihlborg