Abstract

In transitional economies, initial popular support of market reforms is often followed by disillusionment and repudiation of the reform program. To facilitate economic transition, this paper proposes a marketable discount coupon system (DCS) that reassures the public, even as an economy moves from nonmarket to market prices. Unlike price controls, subsidies, or ration coupons, DCS involves no queuing or allocative distortions. Unlike vouchers, DCS would not be negated by inflation. To avoid distortions, discount coupons would be marketable and redeemable, even without purchase of specific products. This procedure permits efficient adjustment of domestic prices to international levels.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.