Shoukang Lin's Books

A Simple Monetary Model of a Shortage Economy

By: Shoukang Lin

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A Simple Monetary Model of a Shortage Economy

By: Shoukang Lin

During the transition from a centrally planned economy to a market economy, many countries seem to have experienced some degree of macroeconomic instability. This paper attempts to provide a theoretical explanation of this phenomenon. The paper develops a simple monetary model and shows how macroeconomic stability can be achieved in a rigid centrally planned economy, despite the inherent structural imbalances and irrational price system. On the other hand, the study shows that without hardening enterprise budget constraints, wage and price decontrol tends to destablize the economy and may lead to persistent budget deficits and inflation. The paper also provides a rigorous analysis of household savings and money demand in a shortage economy, and clarifies the somewhat confusing concept of “monetary overhang” in the literature.

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International Monetary Fund

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ISBN 10

1451960662

ISBN 13

9781451960662

Can the Release of a Monetary Overhang Trigger Hyperinflation?

By: Shoukang Lin,Kent Osband

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Can the Release of a Monetary Overhang Trigger Hyperinflation?

By: Shoukang Lin,Kent Osband

It is widely feared that, once prices are decontrolled in the formerly centrally–planned economies, households’ release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country’s fiscal, monetary, and labor market policies are destabilizing typically does not depend on the money stock. However, the release of a monetary overhang can precipitate a large initial real wage shock. To the extent such a shock is not feasible politically, there is a motive for monetary reform, which must be weighed against the cost of reduced public confidence in money.

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International Monetary Fund

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1451920954

ISBN 13

9781451920956

A Simple Monetary Model of a Shortage Economy

By: Shoukang Lin

Write a review Read reviews Take a Quiz Solve Book Puzzle

A Simple Monetary Model of a Shortage Economy

By: Shoukang Lin

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1451960662

ISBN 13

9781451960662

Book's by Shoukang Lin

A Simple Monetary Model of a Shortage Economy

A Simple Monetary Model of a Shortage Economy

Can the Release of a Monetary Overhang Trigger Hyperinflation?

Can the Release of a Monetary Overhang Trigger Hyperinflation?

A Simple Monetary Model of a Shortage Economy

A Simple Monetary Model of a Shortage Economy

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