The process of transition from a centrally planned economy to one driven primarily by market forces has been a source of controversy and debate. Although the pace and approach has varied we are now beginning to understand some of the essential ingredients necessary for a successful transition.

This paper examines the role and effectiveness of monetary policy in a transition economy. We demonstrate that the type of restrictive policy pursued by the central bank plays a critical role but one which is likely to reduce the chances of a successful transition to a market economy. We examine...

This essay surveys the economic parameters of dissolving enterprises and bankruptcy procedures. It points out that--rules applied during the dissolution of enterprises notwithstanding--firms often end up extinct even when reorganization would reduce their creditors' losses. At the same time, the...