The Hungarian Economic Reform in the 1980s
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At the end of the 1970s, under the pressure of worsening external disequilibrium, the Hungarian authorities decided on important changes in economic policy, the most remarkable being the abandonment of the old strategy of economic growth, and embarked on some systemic changes including a competitive price system, the weakening of the hierarchical system and the expansion of small firms. This trend also continued in the beginning of the 1980s; its most important product was the expansion of the private sector. It soon became clear that all these systemic changes were not sufficient to create an environment in which enterprises could enjoy autonomy and which would force them to behave rationally (Antal, 1983). Pressure for further changes led to the April 1984 resolution of the Central Committee of the Party (hereafter the changes resulting from this resolution are called ‘1985 provisions’) which, in its conceptual outlines means a consistent return to the principles of the reform of 1968 and which, in many respects, goes beyond that reform.1
KeywordsForeign Trade Price System Wage Increase Retail Prex Wage Bill
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