The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy

By Ronald I. McKinnon and Professor Ronald I. Mckinnon

Book Overview

Can knowledge of financial policies in developing countries over four decades help the socialist economies of Asia and Eastern Europe become open market economies in the 1990s? In all these countries... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0801841704
• ISBN13: 9780801841705
• Release Date: September 1991
• Publisher: Johns Hopkins University Press
• Length: 216 Pages
• Weight: 1.08 lbs.

Customer Reviews

Compilation of good policy decisions

This book takes the opposite position of Jeffrey Sachs' big bang theory of economic reform. Instead of a big bang, McKinnon suggests a particular order to economic liberalization in order to maintain some stability during the transition process. He uses many examples to show that, for example, fiscal stability should come first, which is a lesson that has proven itself current with Argentina's and Turkey's cases in the early 2000s. This is a book that, though has a strong economics foundation, leaves something to be desired in terms of rigour of economic analysis. Instead, it was written I think particularly for the usage of policy-makers who may not be familiar with technical economic jargon.

Student

This book gives insight knowledge about the monetary and fiscal policy making in the developing countries. First ten chapters of the book desribes the expereince of Far Eastern and Latin American countries' financial reforms during the 1960-80s. Especially, it would be interesting to read about the reasons of Japanese as well as Korean miraculous growth during the above mentioned period. Besides, last three chapters explain the case of transitional countries of ex-socialist economies. In his last chapters, the author compares the Russian big bang effect with Chinese gradual reforms. He also points out on the importance of fiscal as well as the liberation policies in those transional countries. Since it is based on the development models of many countries in the world,in brief, I think, the book would be very useful for the policymakers in almost all developing countries.