European socialist economies were commonly characterized by low or negligible open inflation, full employment, and stable relative prices and real incomes. Associated features were significant repressed or hidden inflation and disequilibria in goods markets. More recently, as economic and...

This article analyzes the determinants of open inflation in transitional socialist economies, with reference to recent experience in Hungary and Poland. A simple inflation model is centered on the transmission process and on the short-run dynamics of inflation. Further incorporating a number of...