ABSTRACT
International financial institutions such as the IMF and the World Bank are skeptical about state intervention in the economy. Although price liberalization in January [1992, implemented simultaneously in Russia and Kyrgyzstan] resulted in inflation and contraction of productive activity, the IMF continues to insist that remaining restrictions (such as control on oil prices) be removed as soon as possible. The IMF is convinced that the less the state intervenes in the economy, the more rationally resources are allocated and the more efficiently goods are produced.
