What factors determine the success of economic transition,
development and growth? Examining the contrast between East German
shock therapy and Hungary's gradualism, this work generates a set
of generalizable conditions for economic development which imply
some degree of state intervention and strategy. A
stability-oriented incomes policy and a carefully managed
integration strategy can enable the achievement of sustainable
export surpluses, a competitive currency and macroeconomic
stability, whilst providing sufficient room for economic
restructuring, structural transformation and technological catch
up. The dangers of premature integration are also examined.
General
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