Cena dezinflacije u srbijanskoj ekonomiji
The cost of disinflation in the Serbian economy

Summary/Abstract: This paper addresses the problem of gross domestic product loss which occurs in the process of disinflation. This paper uses the term "loss ratio", which refers to the English designation of "Sacrifice Ratio". The paper draws on the methodology developed by Ball in 1994. We consider the period from 2001 to 2011, when the Serbian economy underwent a significant disinflation process. The results show that the gross domestic product loss occurring during the first four episodes of the disinflation corresponded to the overall economic reforms. The data also indicate that the strategy of targeting inflation had a positive impact on the elimination of losses in gross domestic product during this period of disinflation.

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