The “Gradualist” Years, 1990–1996

Daniela Gabor

Chapter 3 in Central Banking and Financialization, 2011, pp 53-109 from Palgrave Macmillan

Abstract: Abstract The fall of socialism left Eastern Europe keen to embrace the Western norms of a liberal democracy and a market economy, the opposite of the plan and the monopoly of the Communist Party (Pop 2006). The mood was confident, as were the promises: a quick transition to a market paradise of consumer well-being and efficient production. Riding the wave of optimism that the development gap could be bridged quickly, the free-market advocates presented system-wide change as a fundamentally simple process if policies were consistent with market efficiency assumptions. The challenge was fundamentally political, requiring an irreversible decision to separate the economic sphere from government interference and to replace the failed central planning mechanism.

Keywords: Exchange Rate; Interest Rate; Monetary Policy; Central Bank; Real Exchange Rate (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-0-230-29504-9_3

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DOI: 10.1057/9780230295049_3

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