Shock Therapy Term Paper by Nicky

Shock Therapy
An overview of the roots and applications of shock therapy policies.
# 146958 | 931 words | 3 sources | APA | 2011 | US
Published on Jan 31, 2011 in Economics (International) , Economics (General)

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The paper discusses how economist Jeffrey Sachs was among the primary advocates of shock therapy for several emerging economies, particularly for Eastern Europe and Russia. The paper explains how shock therapy requires an immediate rather than gradual shift to a market economy. The paper looks at its roots, explores the various applications of shock therapy and examines the consequence of these economic reforms.


From the Paper:

"Shock Therapy refers to the unexpected discharge of price and currency controls, pulling out of state subsidies, and in need of attention trade liberalization inside a country. It more often than not also takes account of large scale privatization of formerly public owned assets. Shock Therapy is used to illustrate dominant severity procedures intended to shatter spirals of very quick price increases. In recent times, it has been used as a comprehensive expression for policies designed to change the post-socialist economies of Eastern Europe and the former Soviet Union. The second also is where the major controversies have happened."

Sample of Sources Used:

  • Klein, N. (2001). The Shock Doctrine: The Rise of Disaster Capitalism. New York: Metropolitan Books, Henry and Holt Company.
  • Kolodko, G.W. (2000). From Shock to Therapy: The Political Economy of Postsocialist Transformation. Oxford: Oxford University Press.
  • Robbins, R.H. (2002). Global Problems and the Culture of Capitalism. Boston, MA: Allyn & Bacon, A Pearson Education Company.

Cite this Term Paper:

APA Format

Shock Therapy (2011, January 31) Retrieved January 28, 2022, from

MLA Format

"Shock Therapy" 31 January 2011. Web. 28 January. 2022. <>