Although various factors point to a more arduous and longer transition in Russia than in Eastern Europe, the broad policy approach should be similar. A necessary condition for effective macroeconomic stabilization is the imposition of hard budget constraints on enterprises. Financial assistance...

Although various factors point to a more arduous and longer transition in Russia than in Eastern Europe, the broad policy approach should be similar.A necessary condition for effective macroeconomic stabilization is the imposition of hard budget constraints on enterprises. Financial assistance...

The paper identifies a number of stylized facts on the behavior of key macroeconomic variables during high inflation and stabilization in countries in transition. To examine the extent to which these stylized facts conform to the predictions of standard open economy monetary theory, the paper...