On attaining office in Autumn 1989, the Solidarity-led government in Poland faced two enormous tasks. First was the restoration of stability to an economy prone to hyperinflation; second, was the replacement of a crumbling command system in favour of a market mechanism, in a country whose market institutions had been destroyed under 40 years of communist rule. "Stabilization and Structural Adjustment in Poland" recounts the events of this period and the course taken by the new government. The authors analyze the issues involved and their significance for the transition process in Poland and elsewhere. The book is divided into four parts. Part 1 outlines the economic and intellectual climate prior to the introduction of the government's bold plan. Named the "Balcerowicz Plan", after its chief architect, this aimed to liberalize and stabilize the economy simultaneously. Part 2 examines the macroeconomic situation in this period. The authors discuss the initial improvements - the improved balance of trade, the accumulation of foreign reserves and the increase in the external value of the zloty. These developments, however, were short lived, and the macroeconomy soon began to decline.