02152cas a2200253 a 4500 AALejournalIMF003931 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451862584 1018-5941 BD-DhAAL BD-DhAAL Grigorian, David. How Tight Is Too Tight? : A Look at Welfare Implications of Distortionary Policies in Uzbekistan / David Grigorian, Edward Gemayel. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Since independence in 1991, Uzbekistan has pursued a gradual approach to the transition from planned to market economy. This approach relied heavily on trade controls, directed credit, and large public investments. A number of financial sector measures were also instituted that distorted resource allocation and increased transaction costs. As a result, while possibly preventing the contraction of output in the early 1990s, these policies led to disappointing economic outcomes and social conditions. The paper reviews the underlying distortions and presents survey-based evidence to support their existence and their detrimental impact on economic activity. Looking forward, the paper-using a representative agent framework to model existing financial sector distortions-offers some guidance regarding the likely implications of eliminating the observed distortions on key aggregate variables. It suggests that the elimination of these distortions will enhance welfare and lead to increased investment and capital stock. Mode of access: Internet Gemayel, Edward. IMF Working Papers; Working Paper ; No. 2005/239 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/239/001.2005.issue-239-en.xml IMF e-Library