MACMILLAN Economic Transition in Hungary and East Germany: Gradualism, Shock Therapy and Catch-Up Development (Studies in Economic Transition)

What factors determine the success of economic transition, development and growth? Examining the contrast between East German shock-therapy and Hungary's gradualism, the book generates a set of generalisable 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 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 examined. Review 'It is an important addition to the literature on this increasingly popular topic.' - Robert F. Miller, SEER 'This is a well-written, well-researched review of transformation processes in the former German Democratic Republic and Hungary...if an understanding of financial sector stablization, economic integration, and the role of foreign trade in transformation economies is sought, the book will prove rewarding.' - Philip J. Bryson, Slavic Review About the Author DR. JOHANNES STEPHAN is Research Fellow at the Institute for Economic Research Halle. Following his graduation from the Freie Universität Berlin in 1994, he undertook a doctoral research project on the economics of systemic transformation and economic development in post-socialist economies which he finalised in 1997 at the Institute for German Studies, University of Birmingham.