The most powerful incentive from the IMF should be a program for currency stabilization and currency conversion to cushion the imposition of market reforms in these new Republics. Without such temporary shock absorbers. hyperinflation and massive unemployment could unleash massive chaos and civil unrest. The huge number of refugees from that type of environment could in turn destabilize Eastern Europe and harm its chances of achieving radical economic reforms and democratic stability. A currency stabilization fund should be a carrotavailable to the Soviets and within reach if they will institute market reforms swiftly. These shock absorbers require billions of dollars of international capital. loans. and grants.
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refugees