Economic Transition in Hungary and East Germany

Gradualism and Shock Therapy in Catch-up Development

  • Authors
  • Johannes Stephan

Part of the Studies in Economic Transition book series (SET)

Table of contents

  1. Front Matter
    Pages i-xv
  2. Introduction

    1. Front Matter
      Pages 1-1
    2. Johannes Stephan
      Pages 3-19
  3. Shock Therapy in the New Bundesländer

    1. Front Matter
      Pages 21-21
    2. Johannes Stephan
      Pages 51-71
  4. Hungary’s Gradualism and Catch-up Development

    1. Front Matter
      Pages 97-97
    2. Johannes Stephan
      Pages 105-149
    3. Johannes Stephan
      Pages 177-222
  5. Conclusions

    1. Front Matter
      Pages 249-249
    2. Johannes Stephan
      Pages 251-256
  6. Back Matter
    Pages 257-293

About this book


What factors determine the success of economic transition, development and growth? Examining the contrast between East German shock-therapy and Hungary's gradualism, the book generates a set of generalisable conditions for economic development which imply some degree of state intervention and strategy. A stability-oriented incomes policy and a carefully managed integration strategy can enable sustainable export surpluses, a competitive currency and macroeconomic stability, whilst providing sufficient room for economic restructuring, structural transformation and technological catch-up. The dangers of premature integration are examined.


development Economic Development economic integration foreign trade growth monetary union transition

Bibliographic information