Stabilization and Structural Reform in Czechoslovakia: An Assessment of the First Stage
January 1, 1992
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Summary
This paper analyzes the Czechoslovak reform program which was launched on January 1, 1991. Under this program, Czechoslovakia has taken decisive steps to establish a market economy, while achieving price stability and a viable external position through restrictive financial policies. But there has been a sharp decline in output. The eventual output recovery is predicated on completing structural market reforms, such as the development of financial markets and the safeguard of their stability, privatization of large enterprises, minimizing government interference with economic signals, and the imposition of the “hard” budget constraint.
Subject: Banking, Economic sectors, Exports, Foreign exchange, Imports, Inflation, International trade, Prices, Privatization
Keywords: balance of payments, Central and Eastern Europe, consumer goods, consumption expenditure, enterprise manager, enterprise sector, exchange rate, Exports, external shock, government consumption expenditure, Imports, Inflation, interest rate, market economy, price jump, price liberalization, Privatization, reform program, terms of trade, WP
Pages:
44
Volume:
1992
DOI:
Issue:
002
Series:
Working Paper No. 1992/002
Stock No:
WPIEA0021992
ISBN:
9781451841671
ISSN:
1018-5941
