Topic: Transition Economies and Economic Reforms.
1. Transition economies in Central and Eastern Europe. How did they make adjustment from central planning to market economy?
2. What are the key aspects of supply-side reforms? (example: allowing the price system to work).
3. Is it necessary to join the ERM before entering the EU? Why?
4. Transition is just a big investment project with early costs and later benefits. Comment on this.
5. Transition economies should finance the whole cost of transition by foreign borrowing, and pay the subsequent interest once they are rich. Would transition economies want to do this? Why might creditors not lend this much?