Analysis of the Causes of Hyperinflation in The Republic of Croatia 1991-1993
DOI:
https://doi.org/10.32015/JIBM.2022.14.2.3Keywords:
inflation, hyperinflation, transition economy, monetary policyAbstract
The paper analyses the causes and dynamics of hyperinflation in the Republic of Croatia – which lasted from 1991 to 1993. Through the analysis of primary and secondary sources, the individual causes of hyperinflation are broken down, and based on the analysis the authors conclude that while the primary inflationary impulse is due to the economic legacy of Yugoslavia, and historical circumstances such as war and the collapse of the former state, the rise in prices would not have been maintained had there not been inflationary taxation as a form of accumulation of foreign exchange reserves. The authors aim to provide newer generations of economists with a complete overview of factors that instigated and maintained inflation in this turbulent and transitory period in Croatia’s history.
References
Anušić, Z., Rohatinski, Ž. and Šonje, V. (1995) The path to low inflation, Croatia 1993 – 1994. Zagreb: Government of the Republic of Croatia
Babić, M. (2006) From disinflation to indebtedness: Croatian economy 1994-2004. Zagreb: Binoza press
Gregurek, M. (2001) Degree and effects of privatization in Croatia. Economic Review, 52 (1-2), p. 155-188.
Kornai, J. (1986) The Soft Budget Constraint. Kyklos, 39 (1), str. 3-30.
Matutinović, I. and Latković, M. (1999) Inverse relationship between inflation and depreciation on the example of Croatia 1991-1993. Economic review no. 1-2., p. 116-143.
Mervar, A. and Nestić, D. (2000) Macroeconomic Policy and Economic Growth in Croatia – Recent Developments and Perspectives. Croatian Economic Survey, (4), str. 121-144.
Perković, M. and Puljiz, V. (2001) War damages, expenses for veterans, victims and victims of war in the Republic of Croatia. Social Policy Review, 8 (2), p. 235-238.
Švaljek, S. (1999) The impact of fiscal deficit and public debt on economic growth. Economic trends and economic policy, 9 (73), p. 160-190.
Woodward, S (1995) Socialist Unemployment: The Political Economy ofYugoslavia, 1945-1990. Princeton: Princeton University Press
Živić, D. (2005) Demography of Croatia – current demographic processes. Diacovensia, 13 (1), p. 119-140.
Žižmond, E. (1991) Inflation and stabilization policy in Yugoslavia. Economic analysis, Vol. 25.1991, 1, p. 11-35.
Downloads
Published
Issue
Section
License
The authors retain rights under the Creative Commons Attribution-ShareAlike 4.0 International CC BY-SA 4.0. Authors assign copyright or license the publication rights in their articles, including abstracts, to MIP=JIBM. This enables us to ensure full copyright protection and to disseminate the article, and of course MIP=JIBM, to the widest possible readership in electronic format. Authors are themselves responsible for obtaining permission to reproduce copyright material from other sources.
