{
  "title": "Financial Sector Reforms and Exchange Arrangements in Eastern Europe",
  "publication": "Occasional Papers, February 15, 1993",
  "sourceUrl": "https://www.imf.org/en/publications/occasional-papers/issues/2016/12/30/financial-sector-reforms-and-exchange-arrangements-in-eastern-europe-46",
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  "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.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Two papers draw from the brief yet radical reform experiences of five countries: Bulgaria, former Czechoslovakia, Hungary, Poland, and Romania.\n- Paper objectives:\n  - Describe financial sector reforms undertaken since the 1980s and the problems encountered.\n  - Discuss roles of privatization, stabilization policies, and prudential supervision in financial sector development.\n  - Analyze different exchange arrangements as they apply to previously centrally planned economies.\n  - Examine general arguments for convertability and consider the desirable degree of exchange rate flexibility."
    },
    {
      "heading": "Part I — Financial Markets and Intermediation (Guillermo A Calvo and Manmohan S Kumar)",
      "content": "- Focus:\n  - Financial sector reforms implemented by Bulgaria, former Czechoslovakia, Hungary, Poland, and Romania since the 1980s.\n  - Problems encountered in the reform processes.\n- Key analytical points:\n  - Roles of privatization in transforming ownership and market structure.\n  - Importance of stabilization policies for macroeconomic environment conducive to financial development.\n  - Need for prudential supervision to support safe intermediation and market confidence."
    },
    {
      "heading": "Part II — Exchange Arrangements of Previously Centrally Planned Economies (Eduardo Borensztein and Paul R Masson)",
      "content": "- Focus:\n  - Application of different exchange arrangements to previously centrally planned economies.\n  - Examination of general arguments for convertability in these countries.\n  - Consideration of the desirable degree of exchange rate flexibility for transition economies."
    },
    {
      "heading": "Cross-cutting themes and policy implications",
      "content": "- Reform sequencing and coordination:\n  - Privatization, stabilization, and prudential supervision are interrelated and influence financial sector development outcomes.\n- Convertability and exchange rate policy:\n  - Policy choice should weigh arguments for current account convertability against macroeconomic stability risks.\n  - Degree of exchange rate flexibility should be assessed in light of each country’s transition dynamics and institutional capacity.\n- Institutional development:\n  - Strengthening prudential supervision and regulatory frameworks is central to successful financial sector reform and market development.\n\nSource: Financial Sector Reforms and Exchange Arrangements in Eastern Europe, By Guillermo Calvo, Eduardo Borensztein, Paul R Masson, Manmohan S. Kumar\n\n---\n\n\nSource: https://www.imf.org/en/publications/occasional-papers/issues/2016/12/30/financial-sector-reforms-and-exchange-arrangements-in-eastern-europe-46"
    }
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    "Authors: Guillermo Calvo, Eduardo Borensztein, Paul R Masson, Manmohan S. Kumar",
    "Published: February 15, 1993",
    "Series: Occasional Papers",
    "DOI: https://doi.org/10.5089/9781557752796.084",
    "Two papers draw from the brief yet radical reform experiences of five countries: Bulgaria, former Czechoslovakia, Hungary, Poland, and Romania.",
    "Paper objectives:",
    "Focus:",
    "Key analytical points:",
    "Focus:",
    "Reform sequencing and coordination:",
    "Convertability and exchange rate policy:",
    "Institutional development:"
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