What action did Milosevic take that led to hyperinflation in Yugoslavia in the mid 1990s?
A)Removal of wage and price controls
B)Having the Serbian National Bank issue over a billion dollars in credits to his political allies
C)Lowering the discount rate to almost 0%
D)Doubling taxes to pay for war with Croatia

Question

Quizplus · Accepted Answer

Milosevic's decision to have the Serbian National Bank issue over a billion dollars in credits to his political allies led to a massive increase in the money supply without a corresponding increase in goods and services, which is a classic recipe for hyperinflation. This action undermined the value of the currency and contributed significantly to the economic instability in Yugoslavia during the mid-1990s.

What Action Did Milosevic Take That Led to Hyperinflation in Yugoslavia