The paper explores a model of the intertemporal process of financial stabilization in a transition economy. We derive an empirical measure to assess whether the banking sector acts as a source of financial discipline, or as a short-term buffer for enterprise losses. Specifically, in the presence...

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...