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...