1. Price-Level Stabilization
in Russia
•Over night prices tripled and quadrupled
•Once the govt. stopped controlling the prices people had
stored their money into banks
•Once the inflation started privately owned org. started
delivering goods
•Inflation increased because of deficits financed by
increases in the money supply
•Led to wide spread tax evasion
•Never did bring out a real output or improved standard
of living
•Infaltation created an uncertain borrowing and investing
•Bankruptcy of farmers and state-owned enterprises