From Inflation to Growth: Eight Years of Transition
37 Pages Posted: 17 Oct 2000
Date Written: July 1998
This paper reexamines growth in transition using panel data to 1997. It suggests that output has been strongly affected by export market growth; that inflation has been associated with weaker output only above a threshold inflation rate; that structural reform has been associated with weaker output initially, but that it stimulates higher growth thereafter; and that rapid disinflation has been associated with output losses only in the presence of pegged exchange rates.
Keywords: WP, exchange rate, export, output, Transition, growth, inflation, disinflation, disinflation dummy, export market growth, rate of inflation, inflation-output threshold, output loss, disinflation episode, sacrifice ratio, standard error, Exports, Export performance, Structural reforms, Baltics
JEL Classification: E31, F43, O40, P20, F10, E02
Suggested Citation: Suggested Citation