To the list of articles29 october 2001
Dispersion of Relative Prices Under Hyperinflation And State Regulation of Prices
The paper provides an econometric analysis of the impact of inflation on the relative prices’ structure in Belarus. Volatility of relative prices is a mechanism, determining the negative correlation between inflation and economic growth. Basically, the analysis proves a set of important hypotheses. First, higher inflation is followed by greater dispersion of relative prices. Second, expected inflation is not neutral. Third, price control over certain goods and services (including utilities, electricity and public transport facilities) actually slows the pace of their growth, but at the same time increases volatility of relative prices.