Open AccessHyperinflation and stabilization in FR Yugoslavia: 1992-1994
Author(s) -
Željko Bogetić,
Diana Dragutinovic,
Pavle Petrović
Publication year - 2022
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan2202173b
Subject(s) - hyperinflation , seigniorage , currency , inflation (cosmology) , economics , revenue , monetary economics , governor , monetary policy , money supply , macroeconomics , finance , engineering , physics , theoretical physics , aerospace engineering
This paper contributes to the literature on hyperinflation and stabilizations by analyzing the great Yugoslav hyperinflation and stabilization during the period 1992 to 1994. The paper makes three contributions. First, it provides updated and more accurate estimates of key economic variables on economic activity, public finances, and seigniorage revenues during hyperinflation based on most recent and updated data. Second, it identifies and analyzes salient features, causes, transmission mechanisms, and monetary consequences of the extreme Yugoslav hyperinflation in the period 1992-1994. It discusses what we call the fundamental equations of the Yugoslav hyperinflation and their implications for inflation expectations and subsequent stabilization. And third, it analyzes the implementation, achievements, and challenges of the currency reform and stabilization program that ended hyperinflation, highlighting the roles of the currency board, currency reform, and of the architect of the program, Dragoslav Avramovic, the then governor of the Central Bank of FR Yugoslavia.