Convergence and Contagion in Transitional Countries

During the transition time in East Central Europe, a number of schools of thoughts clashed over the creation of a market economy and the role of the state. This study compares Slovenian, Czech, Hungarian and Russian external balance and factors of external vulnerabilities with Swedish, Danish and Finnish data bearing in mind the differences in the real economy. The comparison takes into account the bounded rational market participants on complex, scale-free global capital markets, which resulted erratic convergence in this region