ABSTRACT
Transition governments, the mature market economies and international financial institutions disregarded the Post Keynesian propositions of transition. The Post Keynesian recommendation for extensive government intervention, not only during the transition period, but also as a permanent feature of the economic system, was associated with centrally administered socialism. An attempt would be made to identify whether, from the models developed, an optimal model of transition existed. The maintenance of non-pluralism as a strategy incorporated in the Chinese transition process rendered the Chinese model undesirable for Central Europe, Eastern Europe, and the former Soviet Union. The shock therapy process of transition involved the highest reduction in output and employment, followed by the Post Keynesian model, then the Market Socialist model. The Post Keynesians perceived that the initial conditions influence the transition process due to the fact that a number of elements of the centrally administered economic system should be maintained.
