Kravchuk: Table 10

Table 10

Ukraine: Nonlinear Relationship Between Real Balances and the Inflation Tax
(1Q:1992 - 3Q:1996)

	Dependent Variable Regression Coefficients
	M2 Inflation Tax				Enterprise Inflation Tax
	Including Constant		Through Origin		Including Constant		Through Origin
Independent Variables	Beta	Std. Beta	Beta	Std. Beta	Beta	Std. Beta	Beta	Std. Beta
Real Balances	4.650	2.666	3.501	2.254	1.858	1.910	2.574	1.824
	(3.175)**		(3.452)**		(4.278)**		(3.193)**
Real Balances - Squared	-.033	-2.271	-.025	-1.545	-.016	-1.123	-.032	-1.275
	(-2.700)*		(-2.543)*		(-2.512)*		(-2.403)*
DMB Deposit Interest Rate	.0036	.005	-.093	-.156	.049	.206	.020	.064
	(.023)		(-.751)		(1.471)		(.319)
Constant	-37.610				-12.181
R-squared	.479		.683		.754		.649
F-statistic	4.288		10.765		14.332		9.264
Significance of F	(.024)*		(.001)**		(.000)**		(.001)**

Notes:

(1) * Significant at .05 level; ** Significant at .01 level. (t -ratios in parentheses.)
(2) Regression models through the origin are provided on the basis that it is difficult to imagine an inflation tax rate of less than zero percent of GDP. The usual caveats apply; however, confidence in the results is enhanced to the extent that they are consistent with models which include the constant.

Table 10 Ukraine: Nonlinear Relationship Between Real Balances and the Inflation Tax (1Q:1992 - 3Q:1996)

Table 10

Ukraine: Nonlinear Relationship Between Real Balances and the Inflation Tax
(1Q:1992 - 3Q:1996)