In This Review
What Is to Be Done? Proposals for the Soviet Transition to the Market

What Is to Be Done? Proposals for the Soviet Transition to the Market

Edited by Merton J. Peck and Thomas J. Richardson

Yale University Press, 1992, 220 pp.
The Order Of Economic Liberalization: Financial Control In The Transition To A Market Economy

The Order Of Economic Liberalization: Financial Control In The Transition To A Market Economy

By Ronald I. McKinnon

Johns Hopkins University Press, 1991, 200 pp.

Although events in the former Soviet Union outrun the flow of advice from the West, the best studies remain at least partially relevant. In the first of these volumes several first-rate economists distill the results of a large conference organized by the International Institute for Applied Systems Analysis in Vienna. They insist that success in bringing about the transition to a market system requires simultaneous action to free prices, stimulate competition, stabilize the supply of money and finance and provide some protection against the costs of unemployment. McKinnon of Stanford argues instead that balancing the budget, installing a valid tax system and reforming banking should come before liberalization, even if they take some time.