The proposed model analyses the structural factors determining employment as well as the aggregate demand influence on employment fluctuations in transitional economies. It is shown that governments can seek an "optimal" target inflation rate , this rate is lower the more rapid are enterprise reform and privatisation. Therefore, macroeconomic stabilization and privatization appear like mutually consistent goals.
FOURÇANS, A. and VRANCEANU, R. (1995). Inflation and Employment Fluctuations in Transitional Economics. Journal of Public Finance and Public Choice, pp. 189-199.