An Analysis of Repressed Inflation in Two Transition Economies

Economics of Planning, Vol. 29, pp. 51-65, 1996

Posted: 29 Oct 2005

See all articles by Andrew Feltenstein

Andrew Feltenstein

Georgia State University - Department of Economics

Jiming Ha

International Monetary Fund (IMF)

Abstract

We construct a simple model that tests for repressed inflation by estimating a "true" rate of inflation that explains behavior of observed money demand. We estimate the model using quarterly data for Czechoslovakia and Poland. Although our results should be viewed as preliminary, given the imperfect nature of our data, we do have strong evidence that, prior to 1991, there was considerable repressed inflation in Poland, while there was essentially no repressed inflation in Czechoslovakia.

Keywords: Transition, repressed inflation

JEL Classification: E31, P20

Suggested Citation

Feltenstein, Andrew and Ha, Jiming, An Analysis of Repressed Inflation in Two Transition Economies. Economics of Planning, Vol. 29, pp. 51-65, 1996, Available at SSRN: https://ssrn.com/abstract=827627

Andrew Feltenstein (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-4130093 (Phone)

Jiming Ha

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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