Who gains and who loses from Russian credit expansion
Layard, R.
& Richter, A.
(1994).
Who gains and who loses from Russian credit expansion.
(CEP Discussion Papers CEPDP0200).
London School of Economics and Political Science. Centre for Economic Performance.
& Richter, A.
(1994).
Who gains and who loses from Russian credit expansion.
(CEP Discussion Papers CEPDP0200).
London School of Economics and Political Science. Centre for Economic Performance.
This paper traces (a) the impact of credit expansion on inflation and (b) the impact of inflation on the real liquidity of households and enterprises. From April 1992 to September 1993 households paid an inflation tax equal to 13.3% of GDP and received almost no new credits. Enterprises received new credits worth 26% of GDP and "paid" an inflation tax equal to 13% of GDP - a net "gain" of 13% of GDP. Households received negligible credits and "paid" an inflation tax equal to 13% of GDP.