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Whatwas shock therapy

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Whatwas shock therapy
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Meghna Thapar 5 years ago

In economics, shock therapy is the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large-scale privatization of previously public-owned assets. Shock Therapy was the transitional form from authoritarian socialist system to a democratic capitalist system in Russia, Central Asia and East Europe under the influence of the World Bank and IMF.

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