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| Author: | Bisev, G. |
| Title: | Monetary aspects of stabilisation in countries in transit |
| Journal: | Bancni vestnik
1995 : VOL. 44:6, p. 13-22 |
| Index terms: | |
| Freeterms: | post-socialist countries, economy, stabilization, monetary reform, monetary policy, central banks, price movements, interest rate, Rumania, Poland, The Czech Republic, Hungary, Bulgaria, Slovenia, Macedonia, monetary policy, credit policy, restrictions, money, supply |
| Language: | slv |
| Abstract: | The author in the introduction to his article establishes that deep monetary reforms are necessary for countries in transit, which wish to curb high inflation.One of the main reasons for the high growth of prices is high growth of monetary supply, which has to be controlled and diminished.The central bank plays an important role in curbing inflation and in decreasing money supply.In countries in transit it has more functions, but the staqbility of the domestic currency represents its major one.The central bank uses a number of instruments to perform this task.The author analyses different instruments of monetary policy and states that the countries in transit have managed to curb inflation and money supply just by using those instruments.But the price of the decrease is rather high and is demonstrated by a drop in the GNP and a higher rate of unemployment.Central banks in the countries in transit have an impact on the aggregate demand and inflation through the instrument of interest rate policy.The main problem is that the interest rate mechanism is not effective in lowering the general level of prices since there is no financial discipline.The real interest rate in those countries depended on the growth of prices in the past years and underwent many changes.Since the prices were not stable, the ratio between the prime interest rate of the central bank and the passive interest rates of commercial banks was seldom respected.To tell the truth, the prime interest rate was as a role lower than the passive interest rate. |
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