Type: Contribution to book
Economic inertia in the transitional economies of Central Eastern Europe
Milica UVALIC, Milica, Efisio ESPA and Jochen LORENTZEN (eds), Impediments to the transition in Eastern Europe, Florence : European University Institute, 1993, European Policy Studies ; 1, pp. 25-49 [European Policy Studies]
NUTI, Domenico Mario, Economic inertia in the transitional economies of Central Eastern Europe, in Milica UVALIC, Milica, Efisio ESPA and Jochen LORENTZEN (eds), Impediments to the transition in Eastern Europe, Florence : European University Institute, 1993, European Policy Studies ; 1, pp. 25-49 [European Policy Studies] - https://hdl.handle.net/1814/74235
Retrieved from Cadmus, EUI Research Repository
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 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, section 2, who reports their optimistic projections).
This chapter is part of the volume originated from the conference "Impediments to the Transition. The East European Countries and the Policies of the European Community" organized on 24-25 January 1992 in Florence, Italy, by the Working Group on East-West Policy Problems. The Working Group has since 1990 been sponsored by the European Policy Unit (EPU) at the European University Institute (EUI) in Florence.
Cadmus permanent link: https://hdl.handle.net/1814/74235
Series/Number: [European Policy Studies]
Publisher: European University Institute
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