The Period of Transition Economies in Russia

A transition economy is understood as process of transition from socialist to market economy. The main feature of transition economy is that none of the mechanisms of coordination system is dominant: the central planning system does not work anymore, and the market mechanisms are yet to start working to the full power. The market reforms include three stages: macroeconomic regulation, privatization and structural reforms. Particularly, in Russia the transition to the market economy was very painful. Some points will exactly show why some of the problems occur. …