Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results

62 Pages Posted: 15 Feb 2006

See all articles by Carlo Cottarelli

Carlo Cottarelli

International Monetary Fund (IMF)

Date Written: June 1991

Abstract

In countries such as the Soviet Union, where wealth is mainly stored in monetary assets, the behavior of the money to income ratio is a poor indicator of the growth of undesired monetary balances (monetary overhang). In those countries a monetary overhang is primarily a wealth overhang, which has to be analyzed by evaluating deviations of actual from desired wealth holdings; this requires an empirical analysis of consumption and saving decisions. In this paper, we present estimates of a consumption function for the Soviet Union, from which an evaluation of the monetary overhang existing at the end of 1990 is derived.

JEL Classification: D12, E21, E41, P22

Suggested Citation

Cottarelli, Carlo, Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results (June 1991). IMF Working Paper, Vol. , pp. 1-62, 1991. Available at SSRN: https://ssrn.com/abstract=884851

Carlo Cottarelli (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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