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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Bibliographic Details
Main Author:	Ramachandran, S.
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	DENATIONALIZATION GOVERNMENT OWNERSHIP MONETARY THEORY ASSETS TRANSITION ECONOMIES VOUCHER SYSTEMS AFFILIATED ORGANIZATIONS AUCTION BID BIDDERS BIDDING BOOK VALUE COLLUSION EXCESS SUPPLY GNP GOVERNMENT BONDS INFLATION MARKET ECONOMY MARKET PRICES MARKET VALUE PRICE DISTORTIONS PRICE LEVELS PURCHASING PURCHASING POWER SALES SPREAD VOUCHER VOUCHERS WEALTH
Online Access:	http://documents.worldbank.org/curated/en/1997/04/441451/veil-vouchers http://hdl.handle.net/10986/11590

id	okr-10986-11590
recordtype	oai_dc
spelling	okr-10986-115902021-04-23T14:02:56Z The Veil of Vouchers Ramachandran, S. DENATIONALIZATION GOVERNMENT OWNERSHIP MONETARY THEORY ASSETS TRANSITION ECONOMIES VOUCHER SYSTEMS AFFILIATED ORGANIZATIONS ASSETS AUCTION BID BIDDERS BIDDING BOOK VALUE COLLUSION EXCESS SUPPLY GNP GOVERNMENT BONDS INFLATION MARKET ECONOMY MARKET PRICES MARKET VALUE PRICE DISTORTIONS PRICE LEVELS PURCHASING PURCHASING POWER SALES SPREAD VOUCHER VOUCHERS WEALTH 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. 2012-08-13T15:28:38Z 2012-08-13T15:28:38Z 1997-04 http://documents.worldbank.org/curated/en/1997/04/441451/veil-vouchers Viewpoint. -- Note no. 108 (April 1997) http://hdl.handle.net/10986/11590 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	DENATIONALIZATION GOVERNMENT OWNERSHIP MONETARY THEORY ASSETS TRANSITION ECONOMIES VOUCHER SYSTEMS AFFILIATED ORGANIZATIONS ASSETS AUCTION BID BIDDERS BIDDING BOOK VALUE COLLUSION EXCESS SUPPLY GNP GOVERNMENT BONDS INFLATION MARKET ECONOMY MARKET PRICES MARKET VALUE PRICE DISTORTIONS PRICE LEVELS PURCHASING PURCHASING POWER SALES SPREAD VOUCHER VOUCHERS WEALTH
spellingShingle	DENATIONALIZATION GOVERNMENT OWNERSHIP MONETARY THEORY ASSETS TRANSITION ECONOMIES VOUCHER SYSTEMS AFFILIATED ORGANIZATIONS ASSETS AUCTION BID BIDDERS BIDDING BOOK VALUE COLLUSION EXCESS SUPPLY GNP GOVERNMENT BONDS INFLATION MARKET ECONOMY MARKET PRICES MARKET VALUE PRICE DISTORTIONS PRICE LEVELS PURCHASING PURCHASING POWER SALES SPREAD VOUCHER VOUCHERS WEALTH Ramachandran, S. The Veil of Vouchers
relation	Viewpoint
description	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.
format	Publications & Research :: Viewpoint
author	Ramachandran, S.
author_facet	Ramachandran, S.
author_sort	Ramachandran, S.
title	The Veil of Vouchers
title_short	The Veil of Vouchers
title_full	The Veil of Vouchers
title_fullStr	The Veil of Vouchers
title_full_unstemmed	The Veil of Vouchers
title_sort	veil of vouchers
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/1997/04/441451/veil-vouchers http://hdl.handle.net/10986/11590
_version_	1764417283839492096

The Veil of Vouchers

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