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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
JEL(s): 310 , 430
Programme Areas: International Macroeconomics
Link to this Page: www.cepr.org/pubs/dps/DP464.asp


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.

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