Download or read book The Output-Inflation Nexus in Ukraine written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 1996-05-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether expansionary credit policy can help sustain output growth in transition economies, with particular reference to Ukraine’s experience since 1992. We find that, while real credit growth is indeed associated with higher output growth, an increase in the growth rate of nominal credit does not, in general equilibrium, stimulate output growth. Following a short-lived boom — caused by falling real wages — the increase in the growth rate of nominal credit leads to a decline in the level of output.