Hidden and repressed inflation in Soviet-type economies: definitions, measurements and stabilization

  • Domenico Mario Nuti
Part of the International Studies in Economic Modelling book series (ISIM)

Abstract

Official price trends in the USSR and in the Soviet-type economies have changed markedly through time but have followed a roughly uniform general pattern: hyperinflation at times of war, systemic transition and reconstruction; inflation at times of accelerated industrialization; stabilization through currency reform and fiscal measures, followed by modest deflation and a record of substantial price stability, recently broken by the spreading — with fewer and fewer exceptions — of renewed open inflation. This general pattern is due to fairly uniform trends in both policy stances and objective conditions: in theory central planning of both physical and financial flows should enable Soviet-type economies to achieve price stability; in practice the persistence of downward rigidity of money wages, the ambitious growth and accumulation targets, as well as adverse exogenous and systemic factors, have frequently necessitated planned or unplanned price increases.

Keywords

State Sector Excess Demand Inflationary Pressure Cash Holding Official Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Chapman and Hall Ltd 1989

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  • Domenico Mario Nuti

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