Economic Adjustment in Eastern Europe.
Abstract
This report consists of case studies of Hungary and Romania that reveal how individual East European countries have adjusted differently to the external economic shocks of 1973-1975 and 1978-1982. Among the author's conclusions, she finds that, during the next few years. Hungarian economic performance will be shaped by external factors over which the Hungarians have little or no control. Most important will be trends in external capital market conditions and relative prices. The author anticipates that Hungarian terms of trade with the Soviet Union will deteriorate by nearly one-third between 1980 and 1985. Romania, the author concludes, is confronting limits on its extensive growth strategy. Without reforms, Romania's adjustment will continue to require enforced austerity at home. Another response may be a turn to the Soviet bloc market to economize on hard-currency imports, but this may require political concessions on Romania's part that are unacceptable to that country's leaderships. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1984
- Accession Number
- ADA147013
Entities
People
- L. D. Tyson
Organizations
- RAND Corporation