✳flâneur — a map of the web's best reading

Shock therapy (economics) - Wikipedia

en.wikipedia.org · 9,422 words · saved by 1 readers

In economics, shock therapy is a group of policies intended to be implemented simultaneously in order to liberalize the economy, including liberalization of all prices, privatization, trade liberalization, and stabilization via tight monetary policies and fiscal policies. In the case of post-Communist states, it was implemented in order to transition from a command economy to a market economy. Shock therapy is a program intended to economically liberalize a mixed economy or transition a planned economy or developmentalist economy to a free-market economy through sudden and dramatic neoliberal reform. Shock therapy policies generally include ending price controls, stopping government subsidies, privatizing state-owned industries, and tighter fiscal policies, such as higher tax rates and lowered government spending.[1] In essence, shock therapy policies can be distilled to price liberalization accompanied by strict austerity.[2] The first instance of shock therapy was the neoliberal refo

Shock therapy (economics) - Wikipedia Jump to content From Wikipedia, the free encyclopedia Sudden release of price and currency controls Part of a series on Economics Outline Index Glossary Economists Principles of Economics Tools and methodology Economic theory Mathematical modeling Game theory Rational choice Cognitive science ( Behavioral ) Economic equilibrium Empirical methods Experimental Econometrics Time series Spatial Causal inference Quasi-experiments Prescriptive and policy Welfare analysis Social choice theory Rational choice theory Cost–benefit analysis Branches and subfields App

Explore this link on the map →

related reading