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Yugoslavia Inflation and the Foreign Debt
Inflation continued to spiral during the 1980s. In 1987 it
had reached 150 percent annually; by 1989, it reached 1950
percent. In the same period, foreign debt rose, unemployment
remained high, living standards fell, and regional economic
disparities widened.
In 1988 Yugoslavia had the highest per capita foreign debt in
Europe, totaling over US$20 billion (see
table 18, Appendix). In
May 1988 the Yugoslav government signed an agreement with the IMF
that provided new foreign loans and rescheduled the debt, in
return for which the government agreed to cut inflation by
carefully limiting expansion of domestic bank credits. This was
the first attempt to use monetary policy to control Yugoslav
inflation.
Data as of December 1990
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