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This paper discusses the significant overall progress with macro stabilization of these transition countries during 1992?1997. While average inflation declined steadily since 1992, output fell significantly for many of these countries during this period, and it was not until 1996?97 that as a group they experienced positive growth. The five sections of this paper discuss inflation, growth, financial policies, the current account, competitiveness, debt- and non-debt-creating capital flows, and the initial impact of the Asian crisis.
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