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Yugoslavia: Inflation and the Foreign Debt
Country Study > Chapter 3 > The Economy > Managing the Crisis of the 1980's > 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. 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

Last Updated: December 1990

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Yugoslavia was first published in 1990. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

Yugoslavia Main Page Country Studies Main Page

Section 120 of 208


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