The author exposes some of the myths still surrounding the use of vouchers in mass privatization. He explains why using vouchers will not affect the price level in the economy-even though they carry a face value. He shows that vouchers allow assets to sell despite minimum acceptable bid prices...

The former Yugoslav Republic of Macedonia, supported by a World Bank policy-based loan, is trying a new approach to reform its enterprises. Enterprises will still be privatized as soon as possible, but the government frankly acknowledges that a few enterprises have considerable clout and must be...

The buildup of interenterprise credit in many Central and Eastern European countries is often seen as a problem that requires a government bailout. The authors show that arrears rise only temporarily, as the hard budget constraint bites, and then plateau. Therefore, they argue that while...