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The author constructs a macroeconomic model of planned economy and derives a currency basket that will stabilize the current account. The exchange rate is incorporated in a monetary system so as to derive consistent money and price targets. Having derived weights for the currency basket...
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The results strongly support the hypothesis of repressed inflation. The annual rate of inflation of the "true" price index is approximately 12.4 percent higher than that of the official price index over the 10-year period. (DSE)
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