Can the economics of Eastern Europe make the dramatic transition from centrally-planned to market-led economics? This book tries to understand the intellectual background behind this change and the problems of managing it

This paper deals with the early stages of transformation of centrally-planned economies (CPEs) into market economies during which expectations play a key role. It focuses on the transitional phase during which the economy is not any more a CPE but has not yet become a market economy. During this...