HIST 2211 Study Guide - Final Guide: Chinese Economic Reform, Jeffrey Sachs, Deng Xiaoping
28 Apr 2016
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Document Summary
World history key ideas: shock therapy in post-soviet russia. Shock therapy: the sudden implementation of price and currency control measures, the removal of state provided subsidies, and trade liberalization. Shock therapy also usually includes privatization of previously publically owned sectors. The term shock policy" was coined by economist milton friedman. The term shock therapy" was coined by economist jeffery sachs. The difference between the two terms is in the degree of economic liberalization. Yeltsin gathered a group of advisors who had studied market economies, including. In 1992, under yeltsin, market prices were decentralized. This caused food prices which used to be very low to start to rise and become unstable. There was an influx of foreign food goods. Kiosks emerged in towns selling food and other goods. Millions of government works were not paid for weeks or months. The government implemented a program for people to take part in privatization.
