Czech Transition to a Market Economy

Abstract

Under external and internal pressure the Czechoslovak Communist Party agreed to a dialogue with the opposition, the result of which was the relinquishing of power by the communists. And so the ‘velvet revolution’ came about in November 1989. The new government, which resulted from parliamentary elections on June 8–9, 1990 and which brought to power the opposition, organized in the Civic Forum in the Czech lands and its partner in Slovakia, the Public against Violence, as well as their coalition partners, committed itself to a radical economic reform (HN, 4 July 1990, p. 3). The neo-liberals, who held the important economic portfolios, had managed to a great extent to impose their philosophy on the economic reform proposal, which was submitted to the parliament on 1 September 1990. As in Poland, the neo-liberals could gain such influence only with the help of international financial institutions (the IMF and the World Bank).KeywordsMonetary PolicyForeign TradeReal WageMoney SupplyForeign CapitalThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.