Economic Shock Therapy

Economic Shock Therapy is a rapid and comprehensive approach to transforming an economy, often used during major political or crisis situations. It involves quickly removing government controls on prices and trade, liberalizing markets, privatizing state-owned companies, and stabilizing inflation. The goal is to swiftly shift from a planned or unstable economy to a market-driven one, encouraging competition and growth. While it can lead to quick economic changes, it also carries risks of social hardship and inequality during the transition. This strategy aims to jumpstart economic reform and stabilize the economy in the long term.