Abstract
Financial crisis in the form of malfunction in money turnover had become one of the first serious problems faced by the post-communist countries in their transition from centralized planned economy to an open-market economy. The most dangerous and destructive forms of this malfunction at that time were the inflation and non-payment crisis. The banking sector had been getting huge rents from inflation, mainly because of the negative real interest rates paid to depositors.
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Notes
- 1.
We should concentrate upon the overdue tax arrears because they are equivalent to “flow of tax liabilities.” It is necessary to remember that the difference between the flow and the stock of tax arrears is crucial, and that only the flow of tax liabilities is an implementation of current soft budget constraints.
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Sergienko, I.V., Mikhalevich, M., Koshlai, L. (2014). Financial Stabilization Models. In: Optimization Models in a Transition Economy. Springer Optimization and Its Applications, vol 101. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-7544-7_1
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