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shock therapy The approach to transition from socialism to market capitalism that advocates rapid deregulation of prices, liberalization of trade, and privatization.
The Transition to a Market Economy
Six Basic Requirements for Successful Transition
Very few believe that the transition to a market system can be achieved without outside support and some outside financing.
Shock Therapy or Gradualism?
Advocates of a gradualist approach believe the best course is to build up market institutions first, gradually decontrol prices, and privatize only the most efficient government enterprises first.