DP464 Monetary Overhang and Reforms in the 1940s
|Author(s):||Rudiger Dornbusch, Holger C Wolf|
|Publication Date:||October 1990|
|Keyword(s):||Monetary Overhang, Monetary Reform, Reconstruction|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=464|
The monetary overhang, pervasive with price controls and shortages in Eastern Europe and the Soviet Union, offers close parallels to the post-1945 picture of Europe. At that time monetary reform was used in many countries, in one form or another, to bring liquid assets in line with the prevailing level of prices. This paper reviews that experience and explores the lessons for today.