ABSTRACT
This chapter identifies the development of policies of economic transformation in the light of rising economic troubles brought on by changing internal and external economic conditions. The three central planks of the government economic plan put forward by Klaus and Dlouhy related to the liberalization of prices and the market, privatization, and demonopolization. The spectrum of debate operated within the frame-work of economic liberalism in which the main arguments reflected views embodying the contrast between monetarism, represented by Klaus and Dlouhy, and a modified Keynesianism, identified with particular research institutes and groups close to the president. The law on the liberalization of prices was introduced in January 1990. The first auctions were held in January 1991. The position of the federal ministers tended to be strongly supported by the Czech government. Separatist demands became more vociferous and were accompanied by a considerable effort to rehabilitate the fascist Slovak state and its leading figures.
