Incomplete price liberalization reduces the danger of input diversions.

Chinese-styled dual-track liberalization can reduce the depth of transformation recessions because it addresses the effects central for the Blanchard-Kremer disorganization model.

The Lipton-Sachs argument suggests that some of the price increases during the period of price liberalization should rather be seen as a transformation of queueing costs and other similar transaction costs (bribes etc.) into standard visible prices.

The Lipton-Sachs argument explains that price shocks caused by price liberalizations are likely to have extremely high negative welfare effects.