Certain Empirical Data Gathered from the Current Course of Economic Reforms Taking Place in the Former Centrally Planned Economies

• Published in: Eastern European economics Vol. 33; no. 4; pp. 79 - 96
• Main Author: Jonas, Jiri
• Format: Journal Article
• Language: English
• Published: White Plains, N.Y Routledge 01-07-1995; M. E. Sharpe; Taylor & Francis Ltd
• Subjects: Balance of payments deficit; Budget deficits; Centrally planned economies; Commercial production; Economic growth rate; Economic indicators; Economic inflation; Economic reform; Economic statistics; Economic theory; Federal budget deficit; Gross national product; Inflation rates; Money supply; Planned economy; Studies; Transitions; Eastern Europe
• ISSN: 0012-8775; 1557-9298
• DOI: 10.1080/00128775.1995.11648570

An empirical analysis of the development of correlations between budget deficits and the growth rate of money supply on the one hand and the growth of real GNP, the rate of inflation, and the deficit in the current account of the balance of payments on the other hand did not demonstrate the existence of a systematic positive influence of nominal factors on the growth rate of real economic activity. Empirical findings from a group of 26 formerly centrally planned economies do not confirm the belief that stimulation of nominal aggregate demand by means of higher budget deficits and a higher rate of money supply would have made a systematic positive contribution toward higher economic growth .