MACROECONOMIC CONSTRAINTS OF TRANSITIONAL STRATEGY

Transition economies are facing a new macroeconomic environment at the end of 1990s. Therefore, a significant change in expectations has happened. Economic development and business expectations are influenced by new micro/macro constraints with strong impact on macroeconomic indicators of national economies and on the microeconomic restructuring process of transitional firms as well.
Economic developments and events with the strongest impact on macroeconomic performance, like surprisingly long transition recession, impact of Russian economy collapse on investment flows and Asian crisis impact on the restructuring of global capital markets of transition economies, are discussed in this paper.