Yugoslavia's Hyperinflation, 1993-1994: a Social History
Yugoslavia's Hyperinflation, 1993-1994: a Social History
Author(s): James LyonSubject(s): Economic history, Political history, Social history, Economic policy, Government/Political systems, Political economy, Economic development, Transformation Period (1990 - 2010), Fiscal Politics / Budgeting, Sociology of Politics, Socio-Economic Research
Published by: SAGE Publications Ltd
Keywords: Yugoslavia; hyperinflation; economic history; 1993-1994; Slobodan Milošević; Milosevic’s regime; government; restrictions; shortage of food and fuel; National Bank of Yugoslavia;
Summary/Abstract: During the Tito era Yugoslavia ran a budget deficit. Because communist ideological constraints made it impossible to borrow capital, the government financed the deficit by printing money, causing annual inflation rates of 15 to 25 percent. As the Titoist system deteriorated, economic chaos, the budget deficit, and inflation all increased. The breakup of the former Yugoslavia exacerbated what was already a serious problem. In 1993 , with a Communist party still in power (Slobodan Milosević's Socijalistička Partija Srbije-SPS) rump-Yugoslavia could not borrow capital. Given the catastrophic state of the Yugoslav economy and Milosević's irrational economic policies, few investors risked their capital on financing the Yugoslav's deficit. The international condemnation of Serbia for its actions in Bosnia and Croatia, coupled with sanctions, made it impossible for the Yugoslav government to borrow money, ideological and market constraints notwithstanding. [...]
Journal: East European Politics and Societies
- Issue Year: 10/1996
- Issue No: 02
- Page Range: 293-327
- Page Count: 35
- Language: English
- Content File-PDF