Shock therapy (economics)

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As shock therapy economic policies is referred to in those states that were rebuilt after the collapse of real socialism of centrally planned economies in the shortest time to market economies, the transition economies. In particular, the term is used for the conversion of the Polish economy since the turn. Not to be confused is the shock therapy with the Shock Doctrine, an era marked by Naomi Klein 's thesis, according to which shocks are exploited to implement economic reforms against the will of the majority of the population.

The term was used as in the context of Prime Minister Anatoly Chubais and his Western advisors such as Jeffrey Sachs. Communism should be implemented as quickly as possible, such as by coupons distributed to the population, which shares in companies could be acquired.

On a visit to Chile in March 1975, to which had asked at the invitation of Banco Hipotecario de Chile him Arnold Harberger, said Milton Friedman, the fundamental problems of the country, inflation and economic disruption required a "shock treatment " because at a policy of small steps would be a risk that the patient dies before the treatment is working.

In other contexts, the term is being used. To see some economists in the current financial crisis, the political opportunity that the shock could cause the crisis to an economic policy rethinking and a targeted intervention of the states in the structure and development of the world economy.

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