Capital Flows in Central and Eastern Europe : Evidence and Policy Options

Author/Editor:

Carlos A. Végh Gramont ; Guillermo Calvo ; Ratna Sahay

Publication Date:

June 1, 1995

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 95/57

Subject:

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

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

48

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