Yugoslavia's High Inflation Linked to Wage and Exchange Rate Shocks
The study looked at why Yugoslavia had high inflation in the 1980s. They found that money was linked to wages but not prices. Wage and exchange rate shocks were the main reasons for the high inflation, not money supply. This was because money just followed wage and price decisions, and there were debt and balance of payments crises. These findings could be important for other countries going through economic changes.