Monetary overhang

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Monetary overhang is a phenomenon where people have money holdings due to the lack of ability to spend them. This is a phenomenon often present with repressed inflation and was a common occurrence in the Soviet Union. The solution to this is usually a swift burst of inflation.

In the Soviet Union, which was dissolved in 1990/1991, monetary overhang led to hyperinflation. The International Monetary Fund (IMF) subsidised the currency to stabilise it, but Russia chose to leave this arrangement in 1998.