Economic Dynamics in Transitional Economies: The Four-P Governments, the EU Enlargement, and the Bruxelles Consensus

by Sergi; Bruno

• ISBN13: 9780789016379
• ISBN10: 0789016370
• Edition: 1st
• Format: Nonspecific Binding
• Copyright: 2003-09-08
• Publisher: Routledge

Summary

Learn more about the transitional economies of Central and Eastern Europe! This book examines the economic dynamics of Central and Eastern European post-Communist countries. It illuminates the paths these countries are taking toward restructuring their markets, increasing international trade, and bettering their connections with the European Union and other countries. Beginning with a comparative analysis of the three P-governments”--Pigouvian, Partizan, and Paternalistic--and continuing with a discussion of the interrelated political and economic difficulties of transition, author Bruno Sergi proposes a surprising solution. Inspired by the Bruxelles consensus, he proposes that the European Commission should become a fourth P-government,” replacing the role formerly played by the Washington consensus in the restructuring of post-Communist economies. Economic Dynamics in Transitional Economies also explores: regional comparative macroeconomics the aftereffects of the Washington Consensus integration of Eastern and Western European economies interrelations between national and regional monetary activity political and economic policy reform involvement of European Union member countries We are living in historic times, and Economic Dynamics in Transitional Economies will be a welcome guide to the rough roads ahead. This thorough assessment of current political and economic realities will stimulate debate about new European paradigms, the role of the European Union, and the difficulties of post-Communist transition. These issues promise to be vital to the region's success in the new century.

Table of Contents

Foreword	ix
Vladimir Tikhomirov
Preface	xiii
Mario Centorrino
Acknowledgments	xv
Abbreviations and Acronyms	xvii
Introduction	1	(8)
The Regional Context	2	(1)
The Purpose of This Book	3	(1)
Liberalization and Economic Hopes	4	(1)
Synopsis	5	(4)
Chapter 1. The Political Economy in Europe: The Three-P Governments	9	(50)
Introduction	9	(2)
A Formalized Methodology of Analysis	11	(3)
The Microfoundations of Monetary Games	14	(7)
Credibility and Inconsistency	21	(5)
Inconsistency and Institutional Devices Toward Credibility	26	(20)
The Eastern and Western Evidence	46	(13)
Chapter 2. Accepting a Challenge: Joining the Western European Club	59	(34)
Introduction	59	(4)
Interactions and Conflicts in Economic Choices	63	(2)
Structural Economic Convergence: An Alternative Approach	65	(8)
Trade and Financial Integration	73	(10)
Estimation Results	83	(6)
Toward a Political Economy of Integration	89	(4)
Chapter 3. Developments in Transition Economies: Syndromes and Structural Breaks	93	(44)
Introduction	93	(3)
The Decisive Disputes	96	(4)
Economic Slumps and The Syndromes	100	(7)
The Underground Economy: A Syndrome?	107	(7)
The Other Syndromes	114	(6)
The Transformation up to the End of the 1990's	120	(14)
From the 1990's to an Economy Without Syndromes	134	(3)
Chapter 4. The Political Economy of Keynes, Schumpeter, and the Supply-Siders	137	(26)
Introduction	137	(6)
Provoking a Supply Response	143	(4)
Recovery Persistence	147	(7)
Common Fears	154	(6)
Political Economy Conclusions	160	(3)
Chapter 5. The Bruxelles Consensus and the Fourth-P Government	163	(18)
Introduction	163	(1)
The Definitive Issues	163	(6)
A New Consensus versus a Second Lab Experience	169	(4)
Is the Transformation Over?	173	(5)
The Fourth-P Government	178	(7)
A Paradigm for the Next Decade	185
Appendix. Relevant Internet Addresses: Widening the EU's Boundaries	181	(14)
Notes	195	(4)
References	199	(24)
Index	223