[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1990
Kiel Working Paper 417
An explanation is given why communist economies usually react smoothly but sometimes very dramatically to seemingly minor changes in the political and economic environment. In this paper such dramatic reactions materialize in a sudden clamp-down on individual freedom and sudden economic prosperity or in quick political liberalization and a quick demise of economic success. Furthermore, the consequences of temporary economic aid in the face of these potential crises are analysed.