Presenting the first integrated view of transition based on a unified analytical framework, this book evaluates the experience of several transition economies. Fabrizio Coricelli's view of transition emphasizes the connection between peculiar initial conditions and the effects of market reforms. Taking the starting point of underdeveloped markets and market institutions, he evaluates macroeconomic policies in relation to their impact on the development of markets. Coricelli stresses particularly financial markets – the 'missing' market under the system of central planning – and he highlights fundamental trade-offs for economic policy which can play a crucial role in determining the success of reforms.