- Steven Phillips, and Vincent Koen
- Published Date:
- March 1993
Price Liberalization in Russia: Behavior of Prices, Household Incomes, and Consumption During the First Year
Vincent Koen and Steven Phillips
INTERNATIONAL MONETARY FUND
© 1993 International Monetary Fund
Price liberalization in Russia : behavior of prices, household incomes, and consumption during the first year / Vincent Koen and Steven Phillips. — Washington, D.C. : International Monetary Fund, 
p. ; cm. — (Occasional paper / International Monetary Fund, ISSN 0251-6365 ; 104)
1. Prices — Russia (Federation) 2. Income — Russia (Federation) 3. Consumption (Economics) — Russia (Federation) 4. Saving and investment — Russia (Federation) I. Phillips, Steven, 1961— II. Title III. Series: Occasional paper (International Monetary Fund) ; no. 104.
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The following symbols have been used throughout this paper:
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 1991-92 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
Prices in Russia have been decontrolled in several steps since early 1991, after decades of near fixity. Their behavior before and after the January 1992 price liberalization is analyzed in this paper, as is the evolution of wages and overall consumer incomes and expenditures. Developments in 1992 are emphasized. Comparisons are made with recent experience in Central and Eastern Europe. Evidence on shortages, saving, and income distribution is also considered.
The authors are grateful to John Odling-Smee, Thomas Wolf, Benedicte Christensen, Michael Marrese, and Oleg Vjugin for comments on earlier drafts, Michel Le Marois and Robert Dippelsman for technical advice, the specialists of the State Statistical Committee of the Russian Federation and the Center of Economic Analysis and Forecasting for useful discussions, and Barbara Kaminska for research assistance. For information and insight on the reform experiences of Eastern Europe, thanks are due to Eric Clifton, Dimitrios Demekas, Luis Mendonca, Rolando Ossowski, and Tessa van der Willigen. Elin Knotter of the External Relations Department edited the manuscript and coordinated production of the publication.
The views expressed in the paper, as well as any errors, are the sole responsibility of the authors and should not be construed as those of the Russian authorities, Executive Directors of the IMF, or other members of the IMF staff.