engleski

Economic policy strategy between recesion and growth

Croatian economy has adopted radical transition model of market restructuring with privatization and stabilization policy in accordance with so called &#8220 ; Washington consensus&#8221 ; . Generally that meant that the sooner an economy gets to full market environment the better it will be off. There was almost general consensus achieved among western economists about the unavoidable output contraction in first two or three years of transition that would be soon offset by speeded up growth in the following years. But instead output contraction was unprecedented since the Great Depression. This totally unexpected outcome of 1989. Market revolution in Eastern Europe which depressed output and employment has been therefore called &#8220 ; transition recession&#8221 ; . Basically all principle economic indicators for most transition economies haven&#8217 ; t reached the pre-transition level by 1998. That called for reconstruction of transition strategy by World Bank and IMF with focus on employment and growth.

growth; market restructuring; transition; recession

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