01909cas a2200313 a 4500 AALejournalIMF000342 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451969979 1018-5941 BD-DhAAL BD-DhAAL Hernandez-Cata, Ernesto. Liberalization and the Behavior of Output During the Transition From Plan to Market / Ernesto Hernandez-Cata. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper deals with liberalization and the evolution of output during the transition from plan to market. It explains why strong liberalization leads to a comparatively steep fall in output early in the transition, but a relatively strong recovery later on. Because it takes time to restructure the capital stock inherited from the old system, liberalization initially leads to transitional unemployment of capital and the contraction of the old enterprise sector. By making room quickly for the new, more efficient enterprises, however, liberalization also sets the stage for recovery and a much higher level of income in the medium term. Mode of access: Internet Liberalization imf Output imf Real GDP imf Transition imf WP imf Russian Federation imf IMF Working Papers; Working Paper ; No. 1997/053 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/053/001.1997.issue-053-en.xml IMF e-Library