Silva, Joaquim Ramos2021-11-292021-11-291990Silva, Joaquim Ramos. 1990. "Economic policy for democratic transition - with strong popular expectations for a rapid material and social improvement". Instituto Superior de Economia e Gestão - DE Working papers nº 3-1990/DEhttp://hdl.handle.net/10400.5/22588The major fact of international life during. the last years has certainly been the step towards democracy in large parts of the world. The consolidation of this process is obviously essential for the future of humanity and closely concerns the economists. In this respect, we begin by emphasizing that historical evidence has shown how the right solutions to economic problems that arise in such a context contribute to the solid implementation of democratic structures. Moreover, it should be stressed that simultaneous changes in the political, as well as economic order make the transition more fascinating, while, at the same time, making it complex and unstable. In particular, it should be noted that there is an intermediate course between initial and stabilized democracy, which requires special economic treatment and attention. Some of the problems we refer to are, in fact, rather similar, despite the apparent political distances dividing each specific case ( for instance, if the country in question is situated in Eastern Europe or in Latin America ). In this regard, our chief concern is the general will to rapidly and substantially improve welfare and its immediate consequences. Bearing in mind the background of democratic institutional changes, the present paper approaches these topics at a macroeconomic level and focusses the policy issues involved. In this sense, we endeavour to avoid traditional solutions and instrumental opposing camps and, more specifically to combine the recognition of certain economic equilibria with a degree of achievement of social expectations.engDemocracy TransitionEconomic PolicyFiscal PolicyInflationworking paper