
Contents
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The Political Context of Initial Market Design The Political Context of Initial Market Design
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The Regulatory Design of Capital Markets The Regulatory Design of Capital Markets
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From State to Market: The Emergence of New Organizational Forms From State to Market: The Emergence of New Organizational Forms
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Formal Organizational Forms Formal Organizational Forms
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Informal Organizational Forms Informal Organizational Forms
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Patronage Networks Patronage Networks
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From Market to State: Loans-for-Shares and Yeltsin’s Reelection From Market to State: Loans-for-Shares and Yeltsin’s Reelection
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The Growing Power of the Central Bank The Growing Power of the Central Bank
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The Emergence of the Federal Commission as Market Regulator The Emergence of the Federal Commission as Market Regulator
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The Central Banks’ Response The Central Banks’ Response
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From Design to Emergence: A New Organizational Landscape From Design to Emergence: A New Organizational Landscape
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Discussion Discussion
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References References
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10 Deviations from Design: The Emergence of New Financial Markets and Organizations in Yeltsin’s Russia
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Published:October 2012
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Abstract
This chapter is an overview of Yeltsin's economic reforms, with a focus on the financial markets and banks associated with privatization. The architects of Russian reform hoped that private activity could be rapidly and irreversibly severed from the polity such that a “depoliticized” market would quickly fill the void left by the rapid destruction of the state planning system. In contrast, the emergence of a new market system actually evolved through a gradual process of economic experimentation and political settlement where the domains of states and markets were inextricably intertwined. Market reform policies helped dismantle the economic and political structures of the Soviet regime, but they did not dictate what emerged in its place.
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