Financial Markets and Public Finance in the Transformation Process

IMF Working Papers, April 1, 1992

Source details

Canonical URL: Financial Markets and Public Finance in the Transformation Process

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Bibliographic details

Authors: Vito Tanzi
Published: April 1, 1992
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9781451844719.001

Overview

Author: Vito Tanzi
Publication date: April 1, 1992
Publication type: IMF Working Papers; Working Paper No. 1992/029
Pages: 34
Volume: 1992
Issue: 029
DOI: https://doi.org/10.5089/9781451844719.001
Stock No: WPIEA0291992
ISBN: 9781451844719
ISSN: 1018-5941

Core findings and themes

The paper surveys the role of financial markets and fiscal institutions in the transformation process going on in Eastern and Central Europe.
Highlights three central needs:
- (a) the need to create some sort of “social ecological balance” necessary for the working of a modern market economy;
- (b) the need to develop appropriate financial institutions that can mobilize savings and allocate them efficiently;
- (c) the major reforms necessary in the fiscal area.
Calls attention to the extent to which monetary and fiscal policies overlap in these countries and the implications of that overlapping.

Subject areas and keywords

Subject: Banking, Commercial banks, Economic sectors, Expenditure, Financial institutions, Fiscal policy, Government debt management, Public financial management (PFM), Public sector
Keywords: Commercial banks, country, Eastern Europe, enterprise, enterprise manager, government, Government debt management, government program, public finances, Public sector, state bank, state enterprise, WP

Policy implications and recommendations (as stated)

Create a “social ecological balance” to support the functioning of a modern market economy.
Develop appropriate financial institutions capable of mobilizing savings and allocating them efficiently.
Implement major fiscal reforms to adapt public finance to the transformation process.
Address the overlapping of monetary and fiscal policies and consider the implications of that overlapping for policy design.

Source: IMF Working Papers — Financial Markets and Public Finance in the Transformation Process (Vito Tanzi, April 1, 1992), Working Paper No. 1992/029