In the centrally planned economies of Eastern Europe, monetary policy played a subordinate role, there were no capital-market institutions and the banking system was single-tier. All this has to be changed in the transition to a market economy. The example of Hungary, which abolished the...

Foreign direct investment (FDI) has a significant role to play not only in the process of accelerating privatization, but in the development and strengthening of the emerging market economies of Central Eastern Europe (CEE). The inflow of FDI into Poland up to 1994 was marginal as compared to...

Central European governments see foreign direct investment (FDI) as one of the main macroeconomic mechanisms for stabilizing the volatile process of economic and political transition. What are the favorite destinations of FDI in Central Europe? What are the motives of Western investors? Why does...

Various market-type reforms have been introduced into the economies of Eastern Europe in recent years. These have often been warmly applauded in the West, but their success so far has been at best marginal. Without radical changes in the fundamentals of the Soviet-type economic system such...

The countries of Eastern Europe need to raise considerable finance not only in order to improve their balances of payments but also to adjust the structure of their economies over the long term to changed internal and external conditions. The adjustment measures require capital, but the Eastern...