Initially, his governments were characterized by severe repressions against the participants of the uprising, but gradually he liberalized his policy, especially in the sphere of the economy - later also in the political sphere. This policy, commonly referred to as "goulash communism," raised the standard of living to a relatively high standard (as for the Eastern bloc country) and brought him considerable authority and popularity among Hungarians. He announced an amnesty under which political prisoners and participants of the 1956 uprising emerged from prison. In 1966, the Central Committee approved the introductory elements of the free market. The New Economic Mechanism that relaxed the restrictions related to international trade, gave limited freedom to working in trade and allowed a limited number of people to operate in the services sector. A special period of liberalization took place at the time when the country's prime minister was Jenő Fock. This period is considered one of the most free market in the history of the member states of the Council for Mutual Economic Assistance In May 1988 he was removed from the office of the secretary of the Central Committee of the Ministry of Foreign Affairs by Miklós Németh, who began the process of political transformation in Hungary. Kádár, as a moderate leader, is still being assessed ambiguously.

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