 Economic Inertia in the Transitional Economies of Eastern EuropeDomenico Mario Nuti ()
Chapter 14 in Collected Works of Domenico Mario Nuti, Volume I, 2023, pp 331-358 from Palgrave Macmillan Abstract: Abstract The restoration of capitalism, opened by the 1989 revolutions in Central and Eastern Europe and by the August 1991 coup/countercoup/revolution in the former Soviet Union, was expected to put those countries back onto the road to greater efficiency, technical progress, and prosperity. A “shock therapy” of price liberalisation, monetary and fiscal austerity, the opening of the economy to unrestricted free trade, and internal convertibility for residents, was understood to require initial sacrifices; however, thanks to stabilisation, privatisation and other economic and political reforms, these side effects would be short lived. In Poland, for instance, the government expected the Balcerowicz Programme to bring about a decline in national income of 5% in 1990, with a positive supply response already six months after the beginning of the Programme (Lipton and Sachs 1990). Western advisors and international organisations encouraged this expectation, in Poland and elsewhere (see Kolodko 1992a, Sect. 14.2, who reports their optimistic projections). Date: 2023 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-3-031-12334-4_14 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-12334-4_14 Access Statistics for this chapter More chapters in Studies in Economic Transition from Palgrave Macmillan |
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