Establishing monetary stability in emerging market economies

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Westview Press, 1995 - Business & Economics - 269 pages
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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Contents

The High Costs of Monetary Instability Richard C K Burdekin
13
The Importance of Budget
33
Inflation and Optimal Seigniorage in the CIS and Eastern
63
Copyright

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About the author (1995)

Richard J. Sweeney is Sullivan/Dean Professor of International Finance at Georgetown University, Edward Tower is professor of economics at Duke University, and Thomas D. Willett is Horton Professor of Economics at Claremont McKenna College and the Claremont Graduate School. Richard J. Sweeney is Sullivan/Dean Professor of International Finance at Georgetown University, Edward Tower is professor of economics at Duke University, and Thomas D. Willett is Horton Professor of Economics at Claremont McKenna College and the Claremont Graduate School. Richard J. Sweeney is the Sullivan/Dean Professor of International Finance at Georgetown University; Clas Wihlborg is professor of economics at the University of Gothenburg in Sweden; and Thomas D. Willett is professor of economics at the Lowe Institute of Political Economy at Claremont McKenna College.

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