Secondary Currencies in the Russian Hyperinflation and Stabilization of 1921-24

J Rostowski and J Shapiro

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: The introduction of a secondary currency, the chevronets, played an important and beneficial role during hyperinflation in Soviet Russia in the early 1920s. This sophisticated strategy was crowned by the execution of a successful stabilization in March 1924, despite the persistence of a substantial budget deficit. The stabilization was much less costly than appears to have been the case in other post Great War hyperinflations. further, the use of a secondary currency in this case allowed real money and output to increase in the course of 1923, while these were greatly disrupted in the late phase of hyperinflation in cases like Germany and Poland in the period. The theoretical approach to secondary currencies developed here (and in Auerbach, Davison and Rostowski 1992) further suggests that this may have important implications for policy today.

Date: 1992-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0059

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().