01693cas a2200241 a 4500 AALejournalIMF008004 230101c9999 xx r poo 0 0eng d 15.00 USD 9781451930962 1020-7635 BD-DhAAL BD-DhAAL International Monetary Fund. Research Dept. IMF Staff papers : Volume 44 No. 4. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (204 pages) IMF Staff 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. [JEL E23, P21, P27, P52]. Mode of access: Internet IMF Staff Papers; IMF Staff Papers ; No. 1997/004 Full text available on IMF http://elibrary.imf.org/view/journals/024/1997/004/024.1997.issue-004-en.xml IMF e-Library