Macroeconomic Illusion and Microeconomic Facts - the Slovak Case
AbstractUndue emphasis on short-term macroeconomic goals in transition countries impedes structural change, often resulting in a deterioration of achieved macroeconomic outcomes. Repeated attempts at stabilization are then required and structural reforms become more urgent, and more costly. Many of those who benefit from partial reforms often oppose the full completion of reforms. Social costs are thus raised as governments have to finance explicit and implicit state guarantees while budget income shrinks.Slovakia serves as very good example of how partial reform yields short-term benefits yet long-term costs. The authors here (i) describe the Slovak macroeconomic success of 1994-1995 and analyze the microeconomic forces behind its temporality, (ii) analyze the consequent loss of economic equilibrium, and (iii) discuss current issues facing Slovak economic recovery.The main conclusion reached by the authors is that when macroeconomic instability is entrenched, a strict adherence to macroeconomic policy tools is not enough to remedy the situation and is costly in the intermediate perspective. The solution is to be found, rather, in complete legal and institutional reform, which is a necessary prerequisite to the restructuring of enterprises.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.
Volume (Year): 51 (2001)
Issue (Month): 3 (March)
Slovakia; transition; macroeconomics; microeconomics;
Find related papers by JEL classification:
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.