ABSTRACT
The transformations in Eastern Europe (EE) and the former Soviet Union (FSU) afford not only a great challenge to social science, but also the opportunity to analyse which institutions and behavioural traits determine the essence of an economic system. Flexibility and its determinants are important implicit categories in the reform discussions in these countries. This chapter will attempt to make the assumptions underlying these discussions more explicit, by focusing on the constituent parts of flexibility, namely the nature and determinants of behavioural and institutional flexibility.
