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.