ABSTRACT
Economic transfonnation in post-communist Romania has its own peculiarities, which are linked with the heavy burden of history and the policy vagaries of refonns. In spite of a slow privatisation and little restructuring of big industry, a second round of stab iI isation attempts - initiated in the last quarter of 1993 - seemed to be quite successful. From approximately 300% in 1993, inflation came down to 61. 7% in 1994, and to ca. 28% (December on December) in 1995. That result was quite interesting for the present author as well since the line of reasoning espoused by him is that inflation reduction and durable macroeconomic stabilisation require doing away with large distortions in resource allocation. The relapse into inflation in 1996 reinforced this line of reasoning, although one can try to explain the derailment through major blunders of macroeconomic policy.
