This paper discusses three aspects of stabilization and international integration: the real wage; inflation; and the real effective exchange rate. Using empirical evidence on inflation and the real effective exchange rate, we evaluate the gradualist option represented by the Hungarian reforms....

In this paper we focus on the macroeconomic framework for the transformation of the formerly socialist economies of Central Europe into capitalist mixed market economies. We construct a simple model to compare the situations in Hungary and Poland on the eve of the transformation before the new...