Monetary Overhang and Reforms in the 1940s

Dornbusch, Rudiger; Wolf, Holger C.

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Monetary Overhang and Reforms in the 1940s

NBER Working Paper No. w3456

52 Pages Posted: 27 Jun 2007 Last revised: 12 Jun 2020

See all articles by Rudiger Dornbusch

Holger C. Wolf

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS)

There are 2 versions of this paper

Date Written: October 1990

Abstract

Post-1945 Europe had many of the traits observed today in Eastern Europe and the Soviet Union: price controls, shortages, black markets and a monetary overhang. The policy response in most countries was monetary reform - - the deliberate immobilization of liquid assets and in many instances an outright write-off of deposits. The paper reviews the historical experience, notably the German reform of 1948, identifies the policy issues involved and draws lessons for today.

Suggested Citation: Suggested Citation

Dornbusch, Rudiger and Wolf, Holger C., Monetary Overhang and Reforms in the 1940s (October 1990). NBER Working Paper No. w3456, Available at SSRN: https://ssrn.com/abstract=987262