The transition from a supply - to a demand-constrained economy implies a fall in demand below potential supply. However, the process of transition in Eastern Europe and the former Soviet Union has led to a steep drop in both aggregate supply and demand, causing dramatic falls in output not...

Discusses the concept of a well‐functioning economy and attempts to define its principal properties. Examines some aspects of rules of decision making that are essential for the generation of optimal decisions. Brings together the selected properties of a well‐functioning economy and the...

This thoughtful book will be of interest to economists of economic theory and economic systems as well as policymakers in both the private and public sectors.

The structure of this paper is as follows: Scetion I is the an introduction. Section II provides an analysis of the initial condition of the former CPEs on the brink of transformation, and suggests why standard macroeconomic stabilisation policies may not be appropriate. section III records and...