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Intereconomics

, Volume 27, Issue 5, pp 203–209 | Cite as

Full currency convertibility in Eastern Europe?

  • Bernhard Fischer
  • Helmut Reisen
System Transformation
  • 17 Downloads

Abstract

In the countries of Eastern Europe the question as to the degree of currency convertibility is among the most important decisions to be taken when setting the framework for a free market economy. This article attempts to indicate the monetary and fiscal measures that will be required if the reform countries willing and able to be integrated into the EC and OECD are to proceed rapidly to the liberalisation of capital transactions.

Keywords

Interest Rate Eastern European Country Foreign Bank Capital Control Capital Movement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    Cf. F. Bergsten and J. Williamson: Currency Convertibility in Eastern Europe, in: The Federal Reserve Bank of Kansas City (ed.): Central Banking Issues in Emerging Market-Oriented Economies, 1990, pp. 35–49.Google Scholar
  2. 2.
    See: Der Forint ist bald konvertierbar. Gespräch mit dem Vizepräsidenten der ungarischen Nationalbank, Dr. Frigyes Hárshegyi, in: Die Wirtschaft, Berlin, 42/91.Google Scholar
  3. 3.
    Quoted in M. J. Fry and D. M. Nuti: Monetary and Exchange-Rate Policies During Eastern Europe’s Transition: Some Lessons From Further East, in: Oxford Review of Economic Policy, Vol. 8, 1992, No. 1, p. 40.Google Scholar
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    An assessment of liberalisation experience in OECD countries, Latin America and Asia is to be found in B. Fischer and H. Reisen: Zum Abbau von Kapitalverkehrskontrollen: Ein Liberalisierungs-Fahrplan, Verlag Weltarchiv, Hamburg 1992. I. Joumard and H. Reisen: Real Exchange Rate Overshooting and Persistent Trade Effects: The Case of New Zealand, in: The World Economy, June 1992, examines the interaction of financial deregulation, exchange rate reactions and trade effects.Google Scholar
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    Cf. H.-P. Fröhlich: Währungspolitische Reformen in Osteuropa, Institut der Deutschen Wirtschaft, Beiträge zur Wirtschafts- und Sozialpolitik No. 197, Cologne 1992.Google Scholar
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    Cf. for example J. Williamson: Capital Account Convertibility: A Cost-Benefit Analysis for Developing Countries, in: H. Reisen and B. Fischer (eds): Financial Opening. Developing Country Policy Issues and Experiences, OECD, Paris 1992 (forthcoming).Google Scholar
  7. 7.
    Cf. B. Fischer and H. Reisen: Capital Account Opening: Pitfalls, Prerequisites and Perspectives, OECD Development Centre Studies, Paris 1992 (forthcoming). See also H. Reisen and H. Yerches: Time-Varying Estimates on the Openness of the Capital Account in Korea and Taiwan, in: Journal of Development Economics (forthcoming).Google Scholar
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    Cf. P. Poret: Exchange Control Issues in Partners in Transition Countries, in: OECD Observer, Paris (forthcoming).Google Scholar
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    Cf. OECD: Economic Survey, Hungary, Paris 1991.Google Scholar
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    On the connection between foreign and domestic government borrowing, see H. Reisen: Public Debt, External Competitiveness, and Fiscal Discipline in Developing Countries, in: Princeton Studies in International Finance, No. 66, Princeton, N.J., November 1989.Google Scholar
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    Cf. B. Fischer and H. Reisen: Capital Account Opening, op. cit.Google Scholar
  12. 12.
    see also P. Kenen: Financial Opening and the Exchange Rate Regime, in: H. Reisen and B. Fischer (eds.): Financial Opening, op. cit..Google Scholar
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    Cf. R. Portes: Is There a Better Way?, in: International Economic Insights, May/June 1992, pp. 21 f.Google Scholar
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    Cf. B. Fischer and H. Reisen: Zum Abbau von Kapitalverkehrskontrollen, op. cit., Ein Liberalisierungs-Fahrplan, Verlag Weltarchiv, Hamburg 1992. I. Joumard and H. Reisen: Real Exchange Rate Overshooting and Persistent Trade Effects: The Case of New Zealand, in: The World Economy, June 1992, p. 29.Google Scholar
  15. 15.
    Cf. OECD: Economic Survey, Czech and Slovak Federal Republic, Paris 1991, p. 105.Google Scholar

Copyright information

© HWWA and Springer-Verlag 1992

Authors and Affiliations

  • Bernhard Fischer
    • 1
  • Helmut Reisen
    • 2
  1. 1.Hamburg Institute for Economic Research (HWWA)HamburgGermany
  2. 2.OECD Development CentreParisFrance

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