The macroeconomics of price reform in socialist countries: a dynamic framework

Simon Commander and Fabrizio Coricelli

No 555, Policy Research Working Paper Series from The World Bank

Abstract: This paper emphasizes the fiscal underpinnings of the inflationary process and those particular dynamics when a dual price system is present. In particular, it explores the links between price controls and decontrols and the government budget, mainly through the flow of subsidies to either consumers or producers. A clear conclusion is that without consistency in macroeconomic policy, price liberalization may simply exacerbate imbalances and ultimately provide a mechanism for sustaining inflation, hencecompromising a basic objective of macroeconomic policy.

Keywords: Access to Markets; Economic Theory&Research; Environmental Economics&Policies; Insurance&Risk Mitigation; Markets and Market Access (search for similar items in EconPapers)
Date: 1990-12-31
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Citations: View citations in EconPapers (3)

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