What is economic shock therapy? What unintended side-effects can economic shock therapy cause? Economic shock therapy is when a country removes its protectionist measures in hopes that new entrepreneurs will emerge. The goal is to take a government-controlled economy and turn it into a free-market economy. However, real-life examples proved that this method doesn’t work. Continue below for economist William Easterly’s take on economic shock therapy.
Does Economic Shock Therapy Really Work?










