Unemployment and Inflationary Finance Dynamics at the Early Stages of Transition

Ruggerone, Luigi

doi:10.2307/2235262

Cited by 22 publications

(12 citation statements)

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“…6 This assumption is reasonable if we consider the extreme ine¤ciency of the banking and ¢nancial sectors in transitional economies. Ruggerone (1996) examines in greater depth how monetary policy may a¡ect the growth of the private sector, interacting with the lack of an e¤cient banking system. 7 Our model can be easily modi¢ed to embed taxes levied on pro¢ts only.…”

Section: á the Modelmentioning

confidence: 99%

On the Role of Sector Size in Determining the Transition Path

Femminis¹,

Ruggerone²

1999

The Manchester School

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This paper is an attempt to capture the relevance of the relative magnitude of the state and the private sectors in making the transition from central planning more likely to succeed. The basic idea that we introduce is that the growth of the new private sector, in an environment characterized by a severe form of credit constraint, depends on its relative magnitude in the economy. We also propose an extension of the model which examines the issue of full privatization versus restructuring in a credit-constrained environment.

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Section: á the Modelmentioning

confidence: 99%

On the Role of Sector Size in Determining the Transition Path

Femminis¹,

Ruggerone²

1999

The Manchester School

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“…Moreover, these two variables are used to tie down the basics of the dual economy; the parallel market in foreign exchange operates via Q Ã E while the parallel market in goods operates via Q. As Ruggerone (1996) observes, tax issues seem to have been sidestepped in some recent theoretical work notwithstanding the special role of the tax system in the early stages of the transition process. We therefore contribute to existing work by explicitly considering tax issues.…”

Section: Expendituresmentioning

confidence: 99%

“…The Supply Side Ruggerone (1996) observes that the interaction of in£ationary ¢nance and real variables during policy reforms has been neglected so far in recent macroeconomic modelling for EMEs. We attempt to address this issue by developing a speci¢cation in which in£ation is underpinned by the supply side.…”

Section: The Money Marketmentioning

confidence: 99%

Modelling the Macroeconomic Policy Framework for an Emerging Market Economy

Green

Murinde

1998

The Manchester School

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We propose a macroeconomic model suitable for policy analysis for an emerging market economy (EME). The model neither uncritically applies conventional macro theory nor departs altogether from orthodoxy; rather, it modi¢es the conventional framework and captures the distinctive features of EMEs. The structure of the model is reduced to three equations: aggregate demand, aggregate supply and the balance of payments. We use these directly to derive policy multipliers. The model innovatively encompasses competing hypotheses from the neoclassical and new-structuralist paradigms, and the three-equation format is particularly convenient for simulation experiments and other empirical work for EMEs with ¢nite macroeconomic series.

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“…The experience of Central and Eastern Europe in the early 90s was that of the output decline at the start of the process of economic transformation, when state inefficient enterprises began to restructure or close down, unemployment grew as capital and labour were reallocated across sectors, while the new private firms came forth. A number of scholars (to name just a few - Burda,1993;Aghion and Blanchard,1994;Rodrik, 1995; Atkeson and Kehoe, 1996;Commander and Tolstopiatenko, 1996;Gavin,1996, Ruggerone, 1996etc. ) took up the issue of explaining the transitional output fall and unemployment theoretically and initiated a strand of the literature later called the Optimal Speed of Transition (OST) work.…”

Section: Introductionmentioning

confidence: 99%

“…The two main exceptions, Castanheira and Roland (2000) and Castanheira (2003), use the Ramsey growth model as a framework. All the OST models can also be split into two main categories: partial equilibrium (Aghion and Blanchard, 1994;Ruggerone, 1996;Brixiova, 1997;Shimer, 1997;Garibaldi and Brixiova, 1998;Boeri, 2000b, etc. ) and general equilibrium models (Atkeson and Kehoe, 1996;Castanheira and Roland, 2000;and Castanheira, 2003).…”

Section: Introductionmentioning

confidence: 99%

Diverging Paths: Transition in the Presence of the Informal Sector

Bouev

2004

SSRN Journal

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This work suggests a development of the seminal model of transition from plan to market economy by Aghion and Blanchard (1994). We introduce an informal sector to show that its presence can generate qualitatively different steady states, to which the economy converges in the end of transition. Two types of transitional dynamics are considered, and it is argued that they can help explain differences in evolution of formal and informal output exhibited, on the one hand, by East European countries and, on the other hand, by the former Soviet Union republics such as Russia or Ukraine.

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Unemployment and Inflationary Finance Dynamics at the Early Stages of Transition

Cited by 22 publications

References 1 publication

On the Role of Sector Size in Determining the Transition Path

On the Role of Sector Size in Determining the Transition Path

Modelling the Macroeconomic Policy Framework for an Emerging Market Economy

Diverging Paths: Transition in the Presence of the Informal Sector

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