Georgia's economic collapse, 1991-1994: the role of state orders and inflation

In the Republic of Georgia, hyperinflation interacted with the state order system to create a self-perpetuating cycle and an almost total collapse of the economy. Breaking this “vicious cycle” required a number of simultaneous reforms in price, trade, and tax policy, which would not have worked as well had they been undertaken piecemeal. This history argues in favor of a “big bang” approach to reform in transition economies.