In this exercise you will investigate what was the immediate impact of reforms on some basic macroeconomic aggregates. Rather than looking at the averages across countries or looking at all countries together, you will look at the data for the country which you chose in class. You should find the data on the International Financial Statistics CD-ROM which is available at bay 16 in the Sawyer library. Also, you will have to refer to the article by Fischer, Sahay and Vegh which is in your reading packet.  If the data for your country is not available you should state that in your answer and move on to the next question.

1. Find the annual real GDP for each year between 1989 (or the earliest available year) and the latest available year. In which year was the output lowest? Is it the same year that Fischer et al (1996) reported in table 2?
2. Briefly comment on the development of real output before (if the data is available) and/or after the reform program was implemented. You can find the date of the program in table 1 in the Fischer article.
3. Find the money stock and the level of consumer prices. Do these series move together at annual frequency? Why or why not?
4. Find the annual rate of inflation for each year between 1989 (or the earliest available year) and the latest available year. Is the maximum annual inflation you found the same as Fischer reported in table 2?
5. Find annual growth rate of the money stock compare it to the annual rate of inflation. Do these series move together? Why or why not?
6. Find the monthly rate of inflation and the monthly rate of growth of money stock. How closely are these two series related?