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Tightening the soft budget constraint in reforming socialist economies (anglais)

The concept of the soft budget constraint has been quoted as appearing "when the strict relationship between expenditures and earnings has been relaxed, because excess expenditure over earnings will be paid by some other institution, typically by the state." The soft budget constraint has been recognized as a key structural characteristic of socialist economies, and its tightening is regarded as one of the central issues in the economic reform of...
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