scholarly journals Stabilization and Growth in Transition Economies: The Early Experience

1996 ◽  
Vol 10 (2) ◽  
pp. 45-66 ◽  
Author(s):  
Stanley Fischer ◽  
Ratna Sahay ◽  
Carlos A Végh
Keyword(s):  
Soviet Union ◽  
Exchange Rates ◽  
Eastern Europe ◽  
Transition Economies ◽  
Former Soviet Union ◽  
Early Experience ◽  
Structural Reforms ◽  
Inflation Rates ◽  
Inflation Stabilization ◽  
Short Run

The authors analyze the growth and stabilization experience in twenty-six transition economies in Eastern Europe, the former Soviet Union, and Mongolia for the period 1989-94. Inflation rates have declined significantly in most countries following an inflation stabilization program. Typically, stabilization has been followed by growth within two years; and growth does not occur without stabilization. Reducing inflation thus appears to be a precondition for growth. An econometric analysis of the short-run determinants of inflation and growth illustrates the key roles of fixed exchange rates, improved fiscal balances, and structural reforms in spurring growth and lowering inflation.

scholarly journals Coordinating Reforms in Transition Economies

2017 ◽  
Author(s):  
Yingyi Qian
Keyword(s):  
Soviet Union ◽  
Eastern Europe ◽  
Transition Economies ◽  
Former Soviet Union ◽  
Scale Economies ◽  
Organizational Forms ◽  
Government Organizations ◽  
The Soviet Union ◽  
Attribute Matching ◽  
Transition Paths

This paper analyzes how differences in organizational forms of centralized economies in the Soviet Union and China affected their reforms and transition paths. It addresses the question of why China succeeded in applying the experimental approach to reform whereas Eastern Europe and the former Soviet Union economies failed. Our answer is based on how government organizations are structured and the effect it has on their coordination capacity. We model the coordination of specialized tasks inside an organization as "attribute matching" and compare organizational forms (U-form in the Soviet Union and M-form in China) in coordinating reforms. Compared to the U-form, the M-form has a distinctive advantage in carrying out experimentation and thus is more flexible in reforms, although it suffers from higher costs due to a lack of scale economies.

scholarly journals EXTERNAL FINANCE IN TRANSITION ECONOMIES: CGE MODELS APPLIED TO POLAND AND HUNGARY

2001 ◽  
Vol 51 (1) ◽  
pp. 43-63 ◽  
Author(s):  
S. I. Cohen
Keyword(s):  
Economic Growth ◽  
Soviet Union ◽  
Eastern Europe ◽  
Transition Economies ◽  
Former Soviet Union ◽  
Financial Resources ◽  
External Finance ◽  
Cge Models ◽  
Production Prices

The transition economies of Eastern Europe and the former Soviet Union have implemented at the eve of the transition public measures to promote economic growth and income protection. The success of the policies is very much dependent on the availability of external finance. By calibrating for a country like Poland CGE models for 1987 and 1990 and simulating such measures it is possible to explore likely changes over these years and the effects of these measures on the sectoral and total levels of production, prices, as well as factor remuneration and use. The analysis is complemented with applications for Hungary in 1988 and 1990. The results show commonalties but also differences between the two countries in their dependence on foreign financial resources necessary for the transition.

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