The Transition to a Market Economy

The Baltic countries of Estonia, Lithuania and Latvia were pioneers among the former Soviet republics in implementing political and economic reforms. Starting in 1988, the transition process in these three countries has been rapid and demonstrates the key role of economic issues in the reform process.In this important new book, a distinguished group of contributors assesses the current situation and highlights certain theoretical features of the transformation process. They conclude that the Baltic States have, for the moment, succeeded in their aim of stabilizing both the domestic price level and the exchange rate by a combination of responsible fiscal policy and adaptation of a pegged, undervalued exchange rate.