This paper examines a price-level target in a model with a forward-looking CalvoTaylor Phillips curve.Contrary to conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output-gap variability than inflation targeting, when the central bank...

This paper makes an empirical examination of the relationship between fiscal balance and structural reforms using panel data from 25 transition economies The results indicate that price liberalisation has a positive impact on fiscal performance, while privatisation and restructuring, via...

In a common assumption of the economics of tax evasion, extending beyond the basic Allingham-Sandmo model, the choice of a taxpayer to evade taxes depends upon the perceived fairness of the tax system.The purpose of the paper is to provide a psychological foundation for this assumption by...

The paper analyzes the experiences and developments of Hungarian banking sector during the transitional process from a centralized economy to a market-oriented system.The paper identifies that early reorganization initiatives, flexible approaches to privatization, and liberal policies towards...

The aim is to review transition literature for evidence that supports sequential reform strategy, as presented in this report. The second part discusses the findings in the context of Azerbaijan, a formerly socialist transition economy with interesting initial conditions.Evidence of the...

The Russian Economy has evolved into a hybrid form, a partially monetized quasi-market system that has been called the virtual economy.In the virtual economy, barter and non-monetary transactions play a key role in transferring value from productive activities to the loss-making sectors of the...

The paper examines currency crisis theories and applies them in searching for the main causes of the Russian crisis.We first study the determination of the exchange rate and then the first and second generation theories on currency crisis and finally the recent theoretical discussions of the...

This study considers the pervasive tax evasion of transition economies, with particular reference to Russia's tax system. Starting with a survey of theoretical literature on tax evasion and corruption, it argues that, although standard tax theory offers many insights, certain special features of...

This paper discusses Russia's "black cash" economy.Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash.Entrepreneurs' opinions are also used...