This paper traces the effects of an appreciation of the deutsche mark with the help of a computable general equilibrium model under alternative structural policy scenarios. In the first scenario, characterized by severe structural rigidities, the contractionary effects of exchange rate...

This Selected Issues paper and Statistical Appendix examines external competitiveness and the exchange rate for the Slovak Republic. The paper describes two simple types of competitiveness indicators: (i) real effective exchange rate measures, which examine underlying fundamentals thought to...

This paper reviews economic developments in the Slovak Republic during 1994–97. In 1996, a large current account deficit emerged as domestic demand surged by more than 20 percent. At the same time, fiscal policy became expansionary, with the fiscal position turning from surplus to deficit....

This paper presents the Slovak Republic’s Financial System Stability Assessment Update including Reports on the Observance of Standards and Codes on Banking Supervision and Insurance Regulation. Commercial banks are by far the dominant financial institutions, though nonbank financial...

The government has begun implementing an ambitious program of banking sector and enterprise reform in 1999. A key aspect of this program is the restructuring and privatization of three large state-owned banks. As a by-product of the bank restructuring, the bad assets carved out from the banks...

The Slovak economy showed recovery from sharp recession. Executive Directors suggested that restoring fiscal sustainability and removing unemployment while maintaining external competitiveness within the monetary union should be given priority. The fiscal consolidation strategy could be...