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Ten Years of Transformation: Macroeconomic Lessons

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  • Wyplosz, Charles

Abstract

Transition was never going to be easy, even if the long-run outlook is highly promising. Not only was the process itself a major theoretical and policy challenge but, inevitably, politics and economics were bound to interfere. With some spectacular exceptions, most countries are now on the right track. With hindsight, the old debate, Big Bang vs. gradualism, is more a question of feasibility even though many of the arguments in favor of Big Bang have now been proven right. Once more inflation has been found to be incompatible with growth and the importance of a good microeconomic structure - especially an effective banking system - is confirmed. The choice of an exchange rate regime, another of the early controversies, appears as secondary to the adherence of a strict monetary policy. The decline of the state is both spectacular and puzzling, combining desirable and dangerous features.

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  • Wyplosz, Charles, 2000. "Ten Years of Transformation: Macroeconomic Lessons," CEPR Discussion Papers 2254, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:2254
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    Cited by:

    1. Max Gillman & Anton Nakov, 2004. "Granger causality of the inflation-growth mirror in accession countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(4), pages 653-681, December.
    2. Alex Segura-Ubiergo & Alejandro Simone & Sanjeev Gupta & Qiang Cui, 2010. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(1), pages 18-37, March.
    3. Gilles DUFRENOT & Alain SAND, "undated". "Structural Reforms, Macroeconomic Policies and the Future of Kazakhstan Economy," EcoMod2004 330600046, EcoMod.
    4. Alain Sand, 2005. "Structural reforms, macroeconomic policies and the future of Kazakhstan," Working Papers 0411, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    5. Sandor Valkovszky & Janos Vincze, 2001. "Estimates of and Problems with Core Inflation in Hungary," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 1(1), pages 69-99.
    6. Robert B.K. Pye, 2000. "The Evolution of the Insurance Sector in Central and Eastern Europe and the Former Soviet Union," William Davidson Institute Working Papers Series 336, William Davidson Institute at the University of Michigan.
    7. Altar, Moisa & Albu, Lucian Liviu & Dumitru, Ionut & Necula, Ciprian, 2009. "Estimation of Equilibrium Real Exchange Rate and of Deviations for Romania," Working Papers of National Institute of Economic Research 090105, National Institute of Economic Research.
    8. Robert Pye, 2005. "The Evolution of Financial Services in Transition Economies: An Overview of the Insurance Sector," Post-Communist Economies, Taylor & Francis Journals, vol. 17(2), pages 205-223.
    9. Andrea Brasili & Bruno Sitzia, 2003. "Risk Related Non Linearities in Exchange Rates: Evidence from a Panel of Central and Eastern European Countries," Open Economies Review, Springer, vol. 14(2), pages 135-155, April.
    10. Maria Piotrowska, 2001. "Macroeconomic shocks across Central European Countries," ERSA conference papers ersa01p147, European Regional Science Association.
    11. Facchini, Giovanni & Segnana, Maria Luigia, 2003. "Growth at the EU periphery: the next enlargement," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 827-862.
    12. Topalli, Margerita & Ivanaj, Silvester, 2016. "Mapping the evolution of the impact of economic transition on Central and Eastern European enterprises: A co-word analysis," Journal of World Business, Elsevier, vol. 51(5), pages 744-759.
    13. Ichiro Iwasaki, 2004. "Evolution of the Government–Business Relationship and Economic Performance in the Former Soviet States – Order State, Rescue State, Punish State," Economic Change and Restructuring, Springer, vol. 36(3), pages 223-257, September.
    14. Barlow, David, 2010. "How did structural reform influence inflation in transition economies?," Economic Systems, Elsevier, vol. 34(2), pages 198-210, June.
    15. Neven Valev & John A. Carlson, 2002. "Tenuous Financial Stability," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0210, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    More about this item

    Keywords

    Banking; Exchange Rate Regime; Liberalization; Sequencing; Transition;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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