| THE TRANSITIONAL ECONOMY: A THEORETICAL APPROACH |
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| by |
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| Annika Charalambidou, Economic University of Athens |
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| JEL classification : P270, P160 |
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| Abstract |
| The articles develops a theoretical framework of analysis for economies in transition. This shows that the economics of transition face unavoidable economic deterioration during the process of changing to a new economic system. This is the unavoidable concomitant of radical change that has to overcome the enormous structural distortions of the economy of "existing socialism" and the difficulties of people and firms to adjust to the new economic conditions. The transitional period in the CEE countries cannot be brief given the nature of the changes. The overthrow is radical and there is a need of both experimentation and often tactical retreats as a result of the inexperience of the reformers, the opposition of their opponents and the insufficient support of the international community. Russia faced all major problems (identified in the analysis) to a greater extent than other CEEs. |
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