Abstract
In their remarkably swift adoption of free trade with full current account convertibility in 1990, both East Germany and Poland experienced rapid industrial decline: the collapse—or threatened bankruptcy—in an astonishingly wide variety of manufacturing and agricultural industries that turned out ex post facto not to be internationally competitive. Are there constraints on how fast currency convertibility, and free arbitrage between domestic and foreign markets for goods and services, is best achieved in a liberalizing socialist economy?
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McKinnon, R.I. (1993). Liberalizing Foreign Trade in a Socialist Economy: The Problem of Negative Value Added. In: Poznanski, K.Z. (eds) Stabilization and Privatization in Poland. International Studies in Economics and Econometrics, vol 29. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2206-1_7
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DOI: https://doi.org/10.1007/978-94-011-2206-1_7
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