Price liberalization occupies a central place in every stabilization program. Its purpose is to reach a rational relative price structure and thus to eliminate the imbalance between the solvent demand and supply of goods and services, set up in the terms of administrative valuation of prices. By removing price level control arises a possibility of unfolding hidden inflationary processes in the economy. The choice of a liberalization scheme is an important problem in this aspect. It is to direct the completion of price liberalization process so that an optimum effect is reached. This problem has been differently solved in countries which economies are in a state of transition. In general, there are two alternatives how to carry out the price reform: a simultaneous liberation of prices of almost all commodities (carried out in Poland and Yugoslavia) or a gradual price liberalization (Romania and Hungary).
Article / Paper
Inflation in Bulgaria - Methodology of Measurement and Tendencies in its Development during 1991 - 1992