Economic Dynamics in Transitional Economies The Four-P Governments, the EU Enlargement, and the Bruxelles Consensus

Learn more about the transitional economies of Central and Eastern Europe! This book examines the economic dynamics of Central and Eastern European post-Communist countries. It illuminates the paths these countries are taking toward restructuring their markets, increasing international trade, and bettering their connections with the European Union and other countries. Beginning with a comparative analysis of the three “P-governments”—Pigouvian, Partizan, and Paternalistic—and continuing with a discussion of the interrelated political and economic difficulties of transition, author Bruno Sergi proposes a surprising solution. Inspired by the Bruxelles consensus, he proposes that the European Commission should become a fourth “P-government,” replacing the role formerly played by the Washington consensus in the restructuring of post-Communist economies. Economic Dynamics in Transitional Economies also explores: regional comparative macroeconomics the aftereffects of the Washington Consensus integration of Eastern and Western European economies interrelations between national and regional monetary activity political and economic policy reform involvement of European Union member countries We are living in historic times, and Economic Dynamics in Transitional Economies will be a welcome guide to the rough roads ahead. This thorough assessment of current political and economic realities will stimulate debate about new European paradigms, the role of the European Union, and the difficulties of post-Communist transition. These issues promise to be vital to the regions success in the new century.

Foreword Preface Acknowledgments Abbreviations and Acronyms Introduction The Regional Context The Purpose of This Book Liberalization and Economic Hopes Synopsis Chapter 1. The Political Economy in Europe: The Three-P Governments Introduction A Formalized Methodology of Analysis The Microfoundations of Monetary Games Credibility and Inconsistency Inconsistency and Institutional Devices Toward Credibility The Eastern and Western Evidence Chapter 2. Accepting a Challenge: Joining the Western European Club Introduction Interactions and Conflicts in Economic Choices Structural Economic Convergence: An Alternative Approach Trade and Financial Integration Estimation Results Toward a Political Economy of Integration Chapter 3. Developments in Transitional Economies: “Syndromes” and Structural Breaks Introduction The Decisive Disputes Economic Slumps and The Syndromes The Underground Economy: A Syndrome? The Other Syndromes The Transformation up to the End of the 1990s From the 1990s to an Economy Without Syndromes Chapter 4. The Political Economy of Keynes, Schumpeter, and the Supply-Siders Introduction Provoking a Supply Response Recovery Persistence Common Fears Political Economy Conclusions Chapter 5. The Bruxelles Consensus and the Fourth-P Government Introduction The Definitive Issues A New Consensus versus a Second Lab Experience Is the Transformation Over? The Fourth-P Government A Paradigm for the Next Decade Appendix. Relevant Internet Addresses: Widening of the EUs Boundaries Notes References Index

Bruno Sergi