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Essay text:
Second, as the
country faces an abrupt shock to the system following the breaking down of the
prevailing political and economic institutions, stabilisation measures ? notably, timely
adoption of sound macroeconomic policies ? are in order. The success of these
measures can be measured by the general government balance relative to GDP and
the annual rate of inflation. The third factor with an impact on the catching-up
process is structural reforms. While establishing and preserving stability is typically
the main focus of policy action, policy-makers also attempt, to varying degrees, to
restructure the economy, which is considered to benefit growth in the longer term...
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