ABSTRACT. Pryor defines economic systems of developing nations in terms of clusters of complementary institutions, using 31 indicators of economic institutions to derive four quite different economic systems. Christiano et al. describe their model economy and display the problems solved by firms and households, and describe the behavior of financial intermediaries and the monetary and fiscal authorities. The transition countries have needed to contend with the problems faced in the 1990s by all developing economies that opened themselves up to the world's financial markets (Kalyuzhnova and Taylor).