Recapitalizing banks in a systemic crisis is a complex medium-term process that requires significant government intervention and careful management at both the strategic and individual bank levels. This paper examines the range of operational and strategic issues involved and the institutional...

Recapitalizing banks in a systemic crisis is a complex medium-term process that requires significant government intervention and careful management at both the strategic and individual bank levels. This paper examines the range of operational and strategic issues involved and the institutional...

The most widely used specification of the import demand function is that in which the quantity of imports is explained by the price level of imports, the price level of domestically produced goods, and the level of income. This paper contends that this formulation of import functions, although...

The paper analyzes empirically the linkages between interest rates, the debt-equity ratio of firms, the overall cost of capital, saving, investment, and growth in the Korean economy during 1963-81. The interdependence between financing and real decisions is explicitly modeled. Estimates show...

The paper analyzes the macroeconomic consequences that flow from enterprises' financing their investment with a large share of debt in relation to equity. For developing countries characterized by segmented financial markets, controls on the banking system, and substantial reliance on debt,...

The paper discusses the interrelationships between payments system reform and monetary policy implementation in selected countries in Central and Eastern Europe. The reforms in the payments system are viewed as closely interrelated with the development of money and foreign exchange markets and...

The transition strategy from administratively set interest rates to market rates is discussed. Despite worldwide trends toward financial liberalization, few monetary authorities are prepared to accept as reasonable any interest rate level that is market determined. The paper suggests some...

Recently, policymakers have been discussing the best basket peg for a country seeking stability in a world of generalized floating. This paper argues that the real exchange rate is the important policy variable and that, although exchange rate data are available daily, price data are available...

A dynamic model of public investment, private investment, savings, and growth is developed and applied to India and Korea. The model highlights the impact of public investment on private investment and growth by incorporating the various channels of influence that public investment has on...