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The Economics of Transition and the Transition of Economics

Jocelyn Horne

The Economic Record, 1995, vol. 71, issue 4, 379-392

Abstract: The economics of transition is the study of the economic transformation from one economic system–central planning–to another, a market system. This paper discusses a number of issues in reform strategy and experiences with reform of Eastern Europe. It is argued that the economics of transition has a wider significance that transcends specific issues of reform strategy and individual country experience. That significance lies in two areas; as a ‘living test’ of the neoclassical model which underpins the reform strategy and as an ultimate challenge to the economics discipline.

Date: 1995
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