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Nonmonetary trade and differential access to credit in the Russian transition

Citation

Ivanenko, Vlad (2003). Nonmonetary trade and differential access to credit in the Russian transition. Problems of Economic Transition, 45(12), 6-57.

Abstract

The unusual rise and fall of nonmonetary trade (NMT) in the Russian transition has been a subject of heated debates. Yet, this phenomenon is often viewed as a peculiarity that one cannot explain by economic considerations alone. In this article, we show that the resort to NMT was a rational, albeit spontaneous, reaction of industrial enterprises to the outflow of liquidity, which, in turn, was precipitated by the combination of persistent budgetary deficits and strict monetary policy. The International Monetary Fun (IMF) pledge to stand by if the government became insolvent made this policy credible. Several mechanisms contributed to the development of credit

Reference Type

Journal Article

Year Published

2003

Journal Title

Problems of Economic Transition

Author(s)

Ivanenko, Vlad