In November 1991 , Gaidar was appointed to the position of Deputy Prime Minister and the Minister of Economy and Finance , becoming thus responsible for all economic and financial issues for a country in turmoil . Having examined the latest data on the real situation in the economy , Yegor Gaidar came to a firm conclusion : only decisive action was possible . In January 1992 , ignoring political opponents ’ protests , the government liberalized prices for industrial and agricultural products . Soon after , decrees on free trade and privatizing state enterprises were adopted . A free market economy emerged on the ruins of the Soviet command economy . The threat of nation-wide hunger was eliminated as the commodity stock grew very quickly . However , this led to double-digit monthly inflation . The government had no other choice but to cut public spending , restrict prices subsidizing from retail , and introduce the value-added tax .
These measures made it possible to stabilize the macroeconomic situation , but triggered political upheaval and mass dissatisfaction among the general population . As a compromise by the presidential team to the opposing Supreme Soviet , Yegor Gaidar resigned from high governmental posts in December 1992 . However , it soon became clear that indulging the Supreme Soviet ’ s policy meant cancelling all the results of the reforms at once and still not reaching political reconciliation .
In September 1993 , Gaidar returned to the government as First Deputy Prime Minister . This was a time of dramatically aggravated political crisis . In these conditions , Yegor Gaidar acted resolutely and
All the burden of responsibility for the country , for rescuing its ruined economy , for the lives and fortunes of millions of people was on my shoulders ... The picture that came to light proved the bitter truth : there were no resources that could mitigate the social expenses of launching the new economic management mechanism . Two or three more months of doing nothing , and we would face economic and political catastrophe , the country ’ s collapse , and a civil war . This is my strong belief .
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