Market instability and economic complexity: Theoretical lessons from transition experiments

Union in 1991. The wholesale liberalization in exchange rate, trade, price, and rapid privatization carried out with ideological fever in EEFSU, while China and Vietnam were cautious in preserving social stability and export-led growth. We should examine the main cause of the Transition Recession in EEFSU. Let us start with the simplest case in transition process, East Germany after German unification (Münter and Sturm 2005).