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Restructuring Socialist Industry. Poland's Experience in 1990

机译：重构社会主义工业。波兰1990年的经验

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The paper reviews Poland's industrial restructuring experience in 1990. It finds four principal reasons for the higher than anticipated fall in industrial output. First, the fact that industry had been oversupported during the socialist period implied that some restructuring towards services was essential and desirable; as this occurred, industrial output fell, while the services sector grew. Second, there were a spate of demand shocks. As the economy moved from shortages and queues to a market system, inventories were run down and hence production declined. Third, the implementation of tight domestic fiscal and monetary policies to stabilize prices and the exchange rate was contractionary. Fourth, the principal market for exports--members of the former CMEA--collapsed as many countries simultaneously entered into a period of reform. The paper concludes that from an overall perspective, the problem of domestic monopolies has not been crucial. Competition from international trade and from close substitutes domestically has prevented monopoly power from being exercised. Industrial subsectors have responded appropriately to relative price changes and to cost increases. The response to the new set of market prices, however, has been slow.

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