... point in September 1991. Inflation was 38,6% by then. 2. After September 1991 there was a year of dezinflation, then one year of stable of stable inflation growth, after which the inflation grew rapidly again in1994. The main characteristics of this period was that the CPI was mostly 10% bigger than the PPI inflation. 3. In the beginning of the 3rd period the inflation accelerated, it nearly reached its 1991 September level, then it was followed by stable dezinflation. The inflation of CPI was very similar to the inflation of PPI So let us see the three periods one by one: 1. 1990-1991 In 1990-1991 the main goal of economic policy was to avoid an external debt crisis in Hungary It was threatening to happen because if 3 reasons: (a) the liquidation of CMEA/COMECON (b) followed by rapid growth of oil prices (c) the collapse of Eastern European Trade The stabilisation policy contained the clamp down of budgetary and monetary ...

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