How can the new governments of Eastern Europe succeed in moving from centrally planned to freemarket economies? This incisive report identifies and describes the major policy choices to be made and discusses what will work and what will not.Reform in Eastern Europe provides a comprehensive, easily read statement of reform policy that stands in the mainstream of modern Western economics. Based on their experience with stabilization policies in other countries, the authors show how Eastern Europe can reduce unemployment during the painful adjustment process, create effective and socially acceptable mechanisms to subject enterprises to market discipline, and replace barter trade under CMEA with market-based international trade.Olivier Blanchard, Rudiger Dornbusch, and Paul Krugman are Professors of Economics at MIT. Richard Layard is Professor of Economics at the London School of Economics. Lawrence Summers is Professor of Economics at Harvard and Director of Research at the World Bank.
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