ABSTRACT
Hungary’s experience shows all this clearly. In examining Hungarian experience, it is necessary to abstract from specific circumstances of the time: for instance, the adverse terms of trade after 1973, or the complications due to the failure of Hungary’s Comecon partners to adopt similar reforms. What can Hungary’s experiment with the ‘new economic mechanism’ tell us about the consequences of strengthening the market mechanism and eliminating (at least in part) the centralisation of microeconomic production and allocation decisions?
