Author : Mr.Ernesto Hernández-Catá
Release : 1997-04-01
Genre : Business & Economics
Kind :
Book Rating : 97X/5 ( reviews)

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Liberalization and the Behavior of Output During the Transition From Plan to Market - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Liberalization and the Behavior of Output During the Transition From Plan to Market write by Mr.Ernesto Hernández-Catá. This book was released on 1997-04-01. Liberalization and the Behavior of Output During the Transition From Plan to Market available in PDF, EPUB and Kindle. This paper deals with liberalization and the evolution of output during the transition from plan to market. It explains why strong liberalization leads to a comparatively steep fall in output early in the transition, but a relatively strong recovery later on. Because it takes time to restructure the capital stock inherited from the old system, liberalization initially leads to transitional unemployment of capital and the contraction of the old enterprise sector. By making room quickly for the new, more efficient enterprises, however, liberalization also sets the stage for recovery and a much higher level of income in the medium term.