The Results of Sanctions
The significance of the sanctions became clear four months later when industrial production fell by 40 percent. The government did not change its policies and continued to spend as it had before the sanctions. To finance their efforts the government ran an increasing deficit and printed more money.
The economic crisis came to a climax by the middle of 1993 when inflation was at a rate of 4667 percent. The Yugoslavia government took action by ending its excessive printing of money, reduced the deficit, imposed taxes on the people, reissued new currency, and allowed products to be sold for their value. These changes improved the situation for a period in Yugoslavia.
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