We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Was Shock Therapy Really a Shock?
- Abstract
The article discusses issues related to the implementation of the shock therapy model of economic transition. The shock therapy model derived its name from Poland's stabilization and liberalization program, initiated on January 1, 1990. The shock therapy model of transition, the dominant model of transition, was attractive to transition governments, international financial institutions, and mature market economies due to its simplicity and narrow transition policies recommended. The transition process was characterized by uncertainty and the absence of any historical paradigms. The shock therapy model highlights the interdependence and mutually supportive and interactive character of economic relationships, implying that reforms should be introduced simultaneously. According to the shock therapy model, restructuring could not have taken place without an effective pricing system, and an effective pricing system could not have existed without a convertible currency. In turn, a convertible currency was impossible without opening the economy to international competition, and international competition could not have been effective without restructuring.
- Subjects
POLAND; POLISH economic policy, 1990-; POLISH economy, 1990-; ECONOMIC stabilization; FREE trade; INTERNATIONAL economic relations
- Publication
Journal of Economic Issues (Association for Evolutionary Economics), 2003, Vol 37, Issue 4, p943
- ISSN
0021-3624
- Publication type
Article
- DOI
10.1080/00213624.2003.11506637