An Analysis of Repressed Inflation in Two Transition Economies

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

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Year of publication:	2005
Authors:	Feltenstein, Andrew ; Ha, Jiming
Publisher:	[S.l.] : SSRN
Subject:	Inflation \| Systemtransformation \| Economic transition \| Polen \| Poland \| Rumänien \| Romania \| Transformationsstaaten \| Transition countries \| Theorie \| Theory \| Planwirtschaft \| Planned economy \| Tschechoslowakei \| Czechoslovakia
Description of contents:	Abstract [papers.ssrn.com]