Economics of Transition: A new methodology for transforming a socialist economy to a market-led economy and sketches of a workable macroeconomic theory

Abstract

Need for a new approach in transforming the socialist economies the proposed methodology benefits of a systematic methodology for immediate transformation of socialist economies into free market system conclusion points of clarification some further thoughts, remarks and observations other forecasting and analysis methods developed from countries in transition high inflation problem dollerization demise of CMEA and collapse of CMEA trade and inter-republican trade of the former Soviet Union hardening the soft budget constraint the enterprise reform privatization the Polish reform experience the Hungarian reform experience the East German experience recent development in the other reforming socialist countries Chinese reform experience the experience of the former Soviet Union the theoretical foundations of reform pogrammes Phillips curve trade-off a review of country experiences.