Interenterprise Arrears in Post-Communist Economies

Jacek Rostowski

No 1994/043, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; IED-price-IED bubble; IED growth; IED market; M ratio; clearing of IED; downstream enterprise; IED expansion; velocity of circulation; real value; upstream enterprise; enterprise assets; IED problem; Bank credit; Monetary base; Credit; Currencies; Currency issuance (search for similar items in EconPapers)
Pages: 42
Date: 1994-04-01
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Citations: View citations in EconPapers (5)

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