This graduate textbook takes a macroeconomic approach to the issue of transformation from communist economies into market economies. At the centre of the analysis stands the role of the state and the definition within a dramatically changing environment. Particular emphasis is given to the emerging role of money and the financial sector. Transition is presented as a story of economic crises, recovery and fragility. Exits from this sequence of events are different and presented in a variety of patterns. The book is rich in empirical observations underpinning the systematic approach with case studies also presented.

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