STABILIZATION AND FOREIGN ECONOMIC POLICY IN HUNGARY

The set-back in the Soviet-Hungarian trade in 1991 can be attributed to the switch-over to US dollar settlement, the political chaos, the collapsing economy, the currency problems and the fall in supply in the SU. Therefore, Hungarian economy cannot rely on the Soviet trade as a stabilizing factor. The authors take their stand on export orientation and system of tools and means of liberalization in foreign economy, they reject shock therapy and urge a gradual development of convertibility. They deem reasonable that the government wants to fully meet its dept service. Yet, stabilization of domestic economy cannot happen without Western undertaking of obligations to a larger extent, and stopping withdrawal of net resources.