Alternative Economic Models of Transition (Alternative Voices in Contemporary Economics)

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9780754636571: Alternative Economic Models of Transition (Alternative Voices in Contemporary Economics)
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Marangos illustrates and develops an analytical framework proposing different models of transition for Central, Eastern Europe and the former Soviet Union economies based on a political economy approach. This makes it possible to understand the complexities of the transition process from a new and more enlightened perspective and to take account of the differing opinions of economists. This approach contrasts with the actual approach adopted at the time by the transition economies, which has been dominated by the neoclassical models, in particular, the shock therapy approach. Alternative Economic Models of Transition develops five alternative models of transition: The Shock Therapy model, The Neoclassical Gradualist model, The Post Keynesian model, The Pluralistic Market Socialist model and The Non-Pluralistic Market Socialist model (the Chinese model). By analysing the transition problem from a political economy perspective, it is possible to reveal the inconsistencies within each transition model and between such models and therefore to identify the potentialities regarding the implementation and maintenance of the necessary reforms that each model recommended. In conclusion, an attempt has been made to identify an optimal model of transition, which maximises social welfare.

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