GROWTH ECONOMIC MODELS AND THEIR IMPLICATIONS TO FINANCIAL POLICY DURING TRANSITION. ATHEORETICAL APPROACH
GROWTH ECONOMIC MODELS AND THEIR IMPLICATIONS TO FINANCIAL POLICY DURING TRANSITION. ATHEORETICAL APPROACH

Summary/Abstract: During 1989, the moment of changes in Eastern Europe, in socialist countries political system were transformed, by renouncing communism, and adopting market based economy. The process had major implications on economic systems in countries such Romania, Bulgaria, Hungary, Poland, Czechoslovakia, that from that moment engaged in wide-ranging political, social, economic and institutional reforms. The year 1989 also marked the beginning of the transition from socialist economy to a market economy to centralized countries mentioned, a process with profound implications on the economic system and financial default. This important structural reforms necessary functioning new economic framework and assumed behavior modification specific old economy, focused on socialist property, presumably achieve in conditions of relative stability allowing rapidly and sustainable growth. This paper takes into discussion some models used by FMI and World Bank (WB) that had implications on financial policy applied in transition country, referring to absorption theory, monetary approach to balance of payment and stabilization programs, as short terms models, respectively.

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