Econometrics of transition growth showed that Central Europe recovered earlier because stabilisation, liberalisation and institutions came earlier. Commonwealth of Independent States (CIS) still lag on reforms, and yet growth surged after 2000. This paper shows that the puzzle is only partly...

This paper reviews evidence of dollarisation in Former Soviet Union (FSU) countries, and finds that it is still very high, the well-known hysteresis effect. However high dollarisation - defined as the use of any foreign currency - is not only due to inertial lack of confidence. There is also...

This paper analyses the importance of developing market-enhancing institutions for restoring economic growth in transition economies during 1991-98. The paper's main finding is that the development of an institutional framework has indeed a significant positive impact on growth, but that...