Economics of Transition

<p>First published in 1998 this volume responded to the recent fall of the Soviet Union and looks at the process of transitioning away from Socialist economies including case studies in the former Soviet Union Poland Hungary China East Germany and other Socialist countries. Taking the view that economic and political indicators suggest a lack of success in the post-Soviet transformation process K?z?lyall? argues that they have been unsuccessful due to poor planning. K?z?lyall? notes an abandonment of the previous system and an ineffective implementation of market capitalism which have led to these negative outcomes. The new method developed herein provides a partial solution through estimating the correct exchange rate based on world prices and under conditions of macroeconomic equilibrium while also allowing planning for sequencing market reforms. Reform issues are then discussed followed by the reform experiences of Poland Hungary East Germany China and the former Soviet Union. Lastly developments in macroeconomic theory are reviewed in light of these case studies. K?z?lyall? concludes that both neoclassical and new Keynesian theories fail to provide an economically meaningful framework for analysis of current economic and employment problems nor for their cure.</p>