The Order of Economic Liberalization, second editi on: Financial Control in the Transition to a Market Economy (The Johns Hopkins Studies in Development) - Hardcover

McKinnon

Hardcover

ISBN 10: 0801847427 ISBN 13: 9780801847424

Publisher: John Hopkins University Press, 1993

Synopsis

Can knowledge of financial policies in developing countries over four decades help the socialist economies of Asia and Eastern Europe become open market economies in the 1990s? In all these countries the loss of fiscal and monetary control has often resulted in high inflation that undermines the liberalization process itself. In the second edition of The Order of Economic Liberalization, Ronald McKinnon builds on his influential work on the liberalization of financial markets in less developed countries and outlines the progression necessary to move from a "repressed" to an open economy.

New to this edition are chapters that contrast the gradual Chinese approach to liberalizing domestic and foreign trade with the "big bang" approach followed by some Eastern European countries and republics of the former Soviet Union. Financial control and macroeconomic stability, McKinnon argues, are more critical to a successful transition than is any crash program to privatize state-owned industrial assets and the banking system.

About this title

Review

"Argues that balancing the budget, installing a valid tax system, and reforming banking should come before liberalization." -- Foreign Affairs

"Invaluable for those wishing to pursue in more detail specific aspects of financial liberalization." -- Finance and Development

Synopsis

In a series of 12 essays, the author outlines the progression necessary for successful financial liberalization and offers an elaboration of his previous work on the liberalization of monetary policy in less developed countries. New to this edition are chapters contrasting two models of foreign trade liberalization: the Chilean model (also followed in Eastern Europe) and the more gradual Chinese model. McKinnon also takes into account the changes in Eastern Europe, including the dissolution of Yugoslavia.

Edition details

• Publisher: John Hopkins University Press
• Publication date: 1993
• ISBN 10: 0801847427
• ISBN 13: 9780801847424
• Binding: Hardcover
• Language: English
• Edition number: 2
• Number of pages: 264