Occasional Papers

Financial Sector Reforms and Exchange Arrangements in Eastern Europe

Author/Editor:

Guillermo Calvo ; Eduardo Borensztein ; Paul R Masson ; Manmohan S. Kumar

Publication Date:

February 15, 1993

Summary:

The two papers draw from the brief yet radical reform experiences of five countries-Bulgaria, former Czechoslovakia, Hungary, Poland, and Romania. The first paper describes the financial sector reforms untertaken by these countries since the 1980s, as well as the problems encountered. It also discusses the roles privatization, stabilization policies, and prudential supervision can play in the financial sector development of these countries. The second paper analyzes the different exchange arrangements as they apply to previously centrally planned economies; examines the general arguments for convertability in these countries; and considers the desirable degree of exchange rate flexibility.

Series:

Occasional Paper No. 1993/002

Subject:

Banking Commercial banks Credit Currencies Exchange rate arrangements Exchange rates Financial institutions Financial markets Foreign exchange Money Stock markets

Notes:

Part I. Financial Markets and Intermediation, by Guillermo A Calvo and Manmohan S Kumar; Part II. Exchange Arrangements of Previously Centrally Planned Economies, by Eduardo Borensztein and Paul R Masson.