- Bijan Aghevli, Eduardo Borensztein, and Tessa Van der Willigen
- Published Date:
- March 1992
©1992 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Aghevli, Bijan B.
Stabilization and structural reform in the Czech and Slovak Federal Republic: First stage / Bijan B. Aghevli, Eduardo Borensztein, and Tessa van der Willigen.
p. cm. — (Occasional Paper ; 92)
Includes bibliographical references.
1. Czechoslovakia—Economic policy—1989- 2. Economic stabilization—Czechoslovakia. I. Borensztein, Eduardo. II. Van der Willigen, Tessa. III. Title. IV. Series: Occasional paper (International Monetary Fund) ; no. 92.
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On January 1, 1991, the Czech and Slovak Federal Republic launched a comprehensive reform program designed to establish a market economy. The program has been successful in achieving price stability and a viable external position through restrictive financial policies, but there has been a sharp decline in output. The eventual output recovery is predicated on completing structural market reforms, such as developing financial markets and safeguarding their stability, privatizing large enterprises, minimizing government interference with economic signals, and imposing the “hard” budget constraint.
The information discussed in this paper was collected during staff visits to Czechoslovakia during 1990 and 1991. The authors are grateful to the Czechoslovak authorities for their cooperation. The authors are also grateful to their colleagues Jeremy Carter, Nadeem Ul Haque, Kanitta Meesook, and Nissanke Weerasinghe, who contributed substantially to this study both directly and indirectly while working on the Czechoslovak team. The paper was edited by David Driscoll, Margaret Casey, and Elisa Diehl of the External Relations Department. The views expressed here, as well as any errors, are the sole responsibility of the authors and do not reflect the opinions of the IMF Executive Board or IMF staff.
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… 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;
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“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.