Finance:Monetary overhang
From HandWiki
Monetary overhang is a phenomenon in which people have more money holdings than they would normally choose to because of a lack of ability to spend it. In an economy where there is monetary overhang to due to shortages, if price controls are removed, the overhang tends to produce a burst of open inflation,[1] or too much money chasing too few goods, thus raising prices. Monetary overhang can also be caused by excess credit.[2] This is a phenomenon often present with repressed inflation and was common in centrally planned economies like the Soviet Union. The Soviet Union experienced monetary overhang from the mid-1980s onwards. This was reported by the IMF in 1991.[3] Subsequent to this report, the USSR collapsed.
References
- ↑ "money overhang". A Dictionary of Economics (3rd ed.). Oxford Reference website: Oxford University Press. 2009. doi:10.1093/acref/9780199237043.001.0001. ISBN 9780199237043. https://www.oxfordreference.com/display/10.1093/oi/authority.20110803100205464.
- ↑ "How China Avoided Soviet-Style Collapse". Los Angeles: Bergruen Institute. September 16, 2021. https://www.noemamag.com/how-china-avoided-soviet-style-collapse/.
- ↑ Cottareli, Carlo (June 1991). "IMF Working Paper No. 91/55: Forced Savings and Repressed Inflation in the Soviet Union: Some Empirical Results" (in English). International Monetary Fund. https://www.imf.org/en/Publications/WP/Issues/2016/12/30/Forced-Savings-and-Repressed-Inflation-in-the-Soviet-Union-Some-Empirical-Results-933.
 |  |
