ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book analyzes the causes of inflation in Bulgaria. It examines the effectiveness of incomes policies that were implemented to control the anticipated pressures on wages when the transition began. The book presents extensive econometric evidence on the effects of wage policy in Bulgaria on inflation, consumption, and employment. It looks at the use of collateral in lending in Bulgaria and considers the central importance of external economic relations to the transition in Bulgaria. The book examines the development of transitional patterns of agricultural production following the collapse of central planning and state-managed agriculture. It explores a model of household choice and proposes logit regressions to test hypotheses developed from that model. The book provides the view that weak market development results in the persistence of a strong cooperative presence.
