This paper reviews Romania's experience with interenterprise arrears during 1991 with the purpose of extracting lessons that might prove useful for other economies in transition to market-based systems. The rapid growth of interenterprise arrears poses a serious policy problem in many of the...

The paper addresses the interaction between exchange rate appreciation and increased protection, specifically nontariff trade barriers, in terms of a two-stage process. In the first stage, an appreciating real exchange rate leads to increases in import penetration beyond what would typically...