Capital Flows in Central and Eastern Europe: Evidence and Policy Options
Summary:
This paper examines the nature and composition of capital flows in selected countries in Central and Eastern Europe during 1987–93. The data show that there was a remarkable turnaround in the capital account in 1992–93. This improvement was accompanied by widening current account deficits, an increase in real consumption, and real exchange rate appreciation. In light of these developments, the paper discusses the main macroeconomic concerns raised by capital inflows and lays out the principal policy options relevant for the transition economies.
Series:
Working Paper No. 1995/057
Subject:
Balance of payments Capital account Capital flows Capital inflows External debt Foreign exchange Real exchange rates
Notes:
Prepared for a seminar on "Western Europe in Transition: The Impact of Opening Up of Eastern Europe and the Former Soviet Union," organized by the Bank of Italy, Austrian National Bank, and the IMF held in Trieste, October 10-11, 1994.
English
Publication Date:
June 1, 1995
ISBN/ISSN:
9781451847741/1018-5941
Stock No:
WPIEA0571995
Pages:
48
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