While international capital flows are rising, the role of banks in the economy is changing and stock markets in OECD and eastern European countries play an increasing role for financing investment and innovation. Economic catching up of eastern Europe, European Monetary Union and problems of...

This paper examines how international investors evaluate the change in the risk-return profile often Central and Eastern European countries that recently entered the European Union (EU). By supplementing international investment position data provided by IMF’s International Financial...