## 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](https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-markets-and-public-finance-in-the-transformation-process-779)

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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

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### 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*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-markets-and-public-finance-in-the-transformation-process-779_