Inflation in the FSU

(Monthly inflation rate - June '94 to March '95)

inflation

data Data and Source

High inflation in the economies of the FSU makes enterprise restructuring more difficult. Under high inflation book values for the existing capital stock become meaningless. Working capital can be rapidly eroded. Delays in collecting receivables lead to real losses. A large amount of uncertainty is added to investment prospects. Under high inflation, enterprise success is likely to be more dependent on effective cash management than on effective enterprise operation.

topic Enterprise Restructuring in the FSU