The Veil of Vouchers
The author exposes some of the myths still surrounding the use of vouchers in mass privatization. He explains why using vouchers will not affect the price level in the economy-even though they carry a face value. He shows that vouchers allow assets...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1997/04/441451/veil-vouchers http://hdl.handle.net/10986/11590 |
| Summary: | The author exposes some of the myths
still surrounding the use of vouchers in mass privatization.
He explains why using vouchers will not affect the price
level in the economy-even though they carry a face value. He
shows that vouchers allow assets to sell despite minimum
acceptable bid prices because the secondary market discount
of voucher prices acts as a safety valve. And he argues that
vouchers do not create purchasing power or overcome capital
shortages, as many claim. But why use them? He explains that
vouchers help avoid rapid changes in the money supply that
could have significant, real short-term effects. And they
help create some harmless illusions-allowing reformers to
avoid claims of selling assets too cheaply-and so safeguard
the difficult transition to a market economy. |
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