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The collapse of the formerly socialist economies has been one of the most dramatic economic events of the late twentieth century. Can they be successfully transformed into modern capitalist economies? This collection draws together the most significant writings on the economics of transition since 1990. Although there are a wide range of examples from different countries and industries, the focus is on analysis of the key issues. These include: * macroeconomics and stabilization * liberalization and the establishment of markets * property rights and the legal framework * reform of banking and finance, agriculture, and the trading system * the functioning of labour markets In addition the opening collection of papers discusses the political economy of transition. This collection draws on material from an enormous range of sources. It includes articles by Barry Eichengreen, Oliver Blanchard, Stanley Fischer and Janos Kornai.