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The shock therapy model of transition


  • John Marangos


The aim of this paper is to develop a comprehensive analysis of the shock therapy model of transition. As such the model requires an analysis of what I define as the primary elements: economic analysis, definition of a good society, speed, political structure, ideological structure and initial conditions. Also it is necessary to develop an appropriate mechanism of implementation, what I define as the secondary elements: price liberalisation-stabilisation, privatisation, institutional structure, monetary policy and the financial system, fiscal policy, international trade and foreign aid and social policy. In addition, there was a need for a strategy by which the reform program would be implemented. In the conclusion an assessment of the shock therapy model as a political strategy takes place.

Suggested Citation

  • John Marangos, 2007. "The shock therapy model of transition," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 1(1), pages 88-123.
  • Handle: RePEc:ids:ijepee:v:1:y:2007:i:1:p:88-123

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    Cited by:

    1. Yi Wen & George E. Fortier, 2019. "The visible hand: the role of government in China’s long-awaited industrial revolution," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 17(1), pages 9-45, January.
    2. C. Năsulea & D. F. Spînu & R. M. Moroianu, 2017. "The Polish Recipe," Вестник Киевского национального университета имени Тараса Шевченко. Экономика., Socionet;Киевский национальный университет имени Тараса Шевченко, vol. 3(192), pages 34-38.


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