Article Abstract:
The experience of Hungary provides clear evidence that premature fixing of the foreign exchange rate does not result in economic stability for transition economies. Hungary implemented a preannounced crawling band exchange rate system during 1995-1997 as part of an economic reform program. The main elements of the program included value-added taxes, increases in consumption and expenditure cuts. The main lesson learned from the case of Hungary is that the crawling peg is a transitional system. An effective exchange rate regime must take into account reform-induced inflationary pressure, credibility and restructuring of production and exports.
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Article Abstract:
Empirical evidence suggests that price liberalization in Russia has not resulted in full market integration. The time-series behavior of commodity prices in Russia during 1992-1995 and the correlation between the behavior of prices of similar goods within and across cities were analyzed to quantify the government's price liberalization program. While price liberalization gradually gathered momentum and prices generally reflected market conditions by first quarter of 1995, resistance to price reform persisted at the regional level.
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Article Abstract:
Research into the equilibrium level of trade of the Czech Republic, Poland and Hungary is presented. There was found to be a clear reorientation of trade from east to west after 1993 in the Czech Republic and Hungary, but trade reorientation was not so visible for Poland.
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