IDEAS home Printed from https://ideas.repec.org/p/sec/cnstan/0063.html
   My bibliography  Save this paper

Investment in Post-communist Economies. Real Facts and Keynesian Myths

Author

Listed:
  • Jacek Rostowski

Abstract

If official statistics are to be believed, the fall in output in the transition economies of Central and Eastern Europe has probably been the largest anywhere in peacetime in modern history (failed harvests could cause even larger falls in agricultural societies, and such effects were felt on a national level as late as 1854 in Ireland). This fall in output was certainly noticeably larger than that which occurred during the Great Depression of the 1930s (compare Tables 7 and 8-10), although it was smaller than that during World War II in countries which served as battlegrounds (France in 1944, Germany and Japan in 1945). It is therefore important to know what the cause of the post-Communist depressions was. Two main explanations have been put forward, the first posits a sharp reduction in the level of aggregate demand as the cause, the second suggests a dramatic change in the structure of demand, to which supply was unable to respond sufficiently rapidly.

Suggested Citation

  • Jacek Rostowski, 1995. "Investment in Post-communist Economies. Real Facts and Keynesian Myths," CASE Network Studies and Analyses 0063, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0063
    as

    Download full text from publisher

    File URL: https://case-research.eu/upload/publikacja_plik/3460342_063.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:econom:v:59:y:1992:i:236:p:383-401 is not listed on IDEAS
    2. Mr. Jonathan David Ostry & Mr. Eduardo Borensztein, 1992. "Structural and Macroeconomic Determinants of the Output Decline in Poland: 1990-91," IMF Working Papers 1992/086, International Monetary Fund.
    3. Eduardo Borensztein & Dimitri G. Demekas & Jonathan D. Ostry, 1993. "An Empirical Analysis of the Output Declines in Three Eastern European Countries," IMF Staff Papers, Palgrave Macmillan, vol. 40(1), pages 1-31, March.
    4. J Rostowski, 1993. "The Implications of Rapid Private Sector Growth in Poland," CEP Discussion Papers dp0159, Centre for Economic Performance, LSE.
    5. Finn E. Kydland & Edward C. Prescott, 1990. "Business cycles: real facts and a monetary myth," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 14(Spr), pages 3-18.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thierry Verdier & Carlos Winograd, 1998. "Privatisation de masse et macroéconomie : un modèle théorique d'une petite économie ouverte," Revue Économique, Programme National Persée, vol. 49(1), pages 257-275.
    2. Giovanni Andrea Cornia & Juha Honkkila & Renato Paniccià & Vladimir Popov, 1996. "Long-Term Growth and Welfare in Transitional Economies: The Impact of Demographic, Investment and Social Policy Changes," WIDER Working Paper Series wp-1996-122, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Malinka Koparanova, 2007. "Structural Changes in the Manufacturing Industry of Transition Economies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-42.
    2. Afanasyev, Dmitriy O. & Fedorova, Elena A. & Popov, Viktor U., 2015. "Fine structure of the price–demand relationship in the electricity market: Multi-scale correlation analysis," Energy Economics, Elsevier, vol. 51(C), pages 215-226.
    3. Apostolos Serletis & Ricardo Rangel-Ruiz, 2007. "Testing for Common Features in North American Energy Markets," World Scientific Book Chapters, in: Quantitative And Empirical Analysis Of Energy Markets, chapter 14, pages 172-187, World Scientific Publishing Co. Pte. Ltd..
    4. Jahangir Aziz & Luc Leruth, 1999. "Cyclical Effects of the Composition of Government Purchases," Macroeconomics 9902007, University Library of Munich, Germany.
    5. repec:zbw:bofrdp:1995_027 is not listed on IDEAS
    6. Papazoglou, Christos & Pentecost, Eric J., 2004. "The dynamic adjustment of a transition economy in the early stages of transformation," Journal of Macroeconomics, Elsevier, vol. 26(3), pages 547-561, September.
    7. Rafal Kasperowicz, 2010. "Identification Of Industrial Cycle Leading Indicators Using Causality Test," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 5(2), pages 47-59, December.
    8. Thomas Dalsgaard & Jørgen Elmeskov & Cyn-Young Park, 2002. "Ongoing changes in the business cycle - evidence and causes," SUERF Studies, SUERF - The European Money and Finance Forum, number 20 edited by Morten Balling, May.
    9. Stéphane Pallage & Michel A. Robe, 2001. "Foreign Aid and the Business Cycle," Review of International Economics, Wiley Blackwell, vol. 9(4), pages 641-672, November.
    10. Greg Hannsgen, 2004. "Gibson’s Paradox, Monetary Policy, and the Emergence of Cycles," Macroeconomics 0407029, University Library of Munich, Germany.
    11. Daehaeng Kim & Chul-In Lee, 2007. "On-the-Job Human Capital Accumulation in a Real Business Cycle Model: Implications for Intertemporal Substitution Elasticity and Labor Hoarding," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 494-518, July.
    12. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2015. "Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 23-55, January.
    13. Rahman, Pk. Md. Motiur & Yamagata, Tatsufumi, 2004. "Business Cycles and Seasonal Cycles in Bangladesh," IDE Discussion Papers 1, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    14. Ioannis Tsamourgelis & Persa Paflioti & Thomas Vitsounis, 2013. "Seaports Activity (A)synchronicity, Trade Intensity and Business Cycle Convergence: A Panel Data Analysis," International Journal of Maritime, Trade & Economic Issues (IJMTEI), International Journal of Maritime, Trade & Economic Issues (IJMTEI), vol. 0(1), pages 67-92.
    15. Philippe Rusin, 2007. "Pologne « libérale » versus Pologne « solidaire »," Post-Print halshs-01159197, HAL.
    16. Aiyagari, S. Rao & Braun, R. Anton, 1998. "Some models to guide monetary policymakers," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 48(1), pages 1-42, June.
    17. Luca Benati, 2001. "Band-pass filtering, cointegration, and business cycle analysis," Bank of England working papers 142, Bank of England.
    18. Diehl, Markus, 1994. "Real adjustment in the economic transformation process: The industrial sector of Vietnam 1986-1992," Kiel Working Papers 597, Kiel Institute for the World Economy (IfW Kiel).
    19. Rodrigo Suescún M., 1995. "Growth, Welfare Costs and Aggregate Fluctuations in Economies with Monetary Taxation," Borradores de Economia 036, Banco de la Republica de Colombia.
    20. Canova, Fabio, 1998. "Detrending and business cycle facts: A user's guide," Journal of Monetary Economics, Elsevier, vol. 41(3), pages 533-540, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sec:cnstan:0063. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marta Kowerko (email available below). General contact details of provider: https://edirc.repec.org/data/caseepl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.