Hyperinflation and banks

In this paper we consider a triangular inter-dependence between hyperinflation, financial repression, and the crisis in FRY 1990s. When all three vertices of triangle are present, propagates is amplified along its edges. We focus, especially, on less studied link repression FRY. Setting administrative limits interest rates under conditions hyperinflation leads to deeply negative real rates. The situation was further aggravated by credit allocation privileged participants. Under such circumstances, dinar components bank balance sheets quickly became worthless, activities banks died down quantities dinars circulation negligible. improved only after removal outside (i.e. sanctions), reorganization entire sector entrance foreign into Serbian market at beginning 2000s.