As for the huge hardships for the population from a sharp rise in the cost of living, monetarists believe that it is better to pass the period of high prices quickly than to stretch financial stabilization for many years. The concept of "shock therapy" was first developed for practical application by the American scientist Jeffrey Sachs and successfully tested in the mid-80s. XX Art. in Latin American countries that have experienced terrible inflation and the collapse of the economy. In a more consistent form, the doctrine of "shock therapy" was implemented in Poland in 1990-1991.
Guided by the doctrine of "shock therapy" such countries as the Czech Republic, Estonia, Russia. In the Czech Republic and Estonia, its implementation was quite successful. The choice that most countries with whatsapp mobile number list economies in transition make in favor of "shock therapy" is due to objective factors. Of course, both for production and for the population, it is better that the transformation be carried out on the basis of a well-thought-out gradualist concept, without prejudice to production volumes and living standards. However, at the initial stage of transformation, as a rule, there are no conditions for the implementation of such a strategy.
Only a few countries that provide a gradual transition to a new state and economic structure, retaining the functions of state institutions, managed to avoid "shock therapy". Thus, the modern economy has shown examples of applying various concepts of transition to market conditions, but all of them have had different results. Transformation processes had significant features in different regions and countries. The main differences between countries and, accordingly, the advantages of one over the other were determined by: the basic level of economic development; the degree of application of market mechanisms and the willingness of economic entities to use them; public consciousness; historically established traditions of management and other factors.
Economic Transition Definition Economics
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