ABSTRACT
The most vocal debate on the transition of Eastern Europe to democracy and capitalism has been, of course, one between those who believed in the aim of establishing a capitalist market economy (whether or not unencumbered with a dose of state intervention) and those who would rather see post-communist countries moving along some more or less unspecified ‘third road’. This put both free marketeers and new Keynesians, whose macroeconomic views dominate the thinking of international financial institutions, in one camp. Both criticised the so-called gradualists who, directly or indirectly, usually showed their sympathy for the search for alternatives. (…)
