The tumbling of Socialist regimes in the CMEA countries in 1989 was accompanied by a decline in national incomes, accelerating inflation, growing budget deficits and mounting foreign debt. The slowdown in economic growth, while following a long-term trend marked by structural deficiencies,...

Economic activity in the Central and Eastern European countries declined markedly in 1990, with the government sector most severely affected. In those countries which initiated a transition to a market-based economy in 1990 (Poland, East Germany, Hungary, to some extent also the CSFR and...

In the advanced reform countries, the expansion of the private sector and of foreign trade – visible results of the transformation – contribute to stabilisation, whereas in the other Eastern European countries, particularly in Russia and Ukraine, stagnation of reforms and growing...

The slump in production of goods and services in the former socialist countries is of similar kind and dimension as the one of the Great Depression of 1928/1933. However, unlike in the previous experience sixty years ago all countries suffer from rampant inflation while employment is falling...