Advertisement

Banking on the Transition

Chapter

Abstract

In 1989–91 the centrally planned countries of Central and Eastern Europe (CEE)2 liberalized most prices and international trade. These and other transition reforms revealed how little the physical capital of state enterprises is worth in a market economy.3 The low value of the capital assets is due to investment inefficiency under central planning and the decline in the investment rate preceding the transition, the abrupt change in relative prices that initiated the transition period, and the discontinuation of external subsidies when the Soviet trade bloc collapsed.

Keywords

Monitoring Cost Bank Credit Bank Debt Perverse Incentive Economic Policy Research 
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.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography

  1. Aghion, P. and O. Blanchard (1994) ‘On the Speed of Transition in Central Europe’, NBER Macroeconomics Annual (Cambridge, Mass.: MIT Press) 283–320.CrossRefGoogle Scholar
  2. Aghion, P., O. Blanchard and R. Burgess (1994a) ‘The Behaviour of State Firms in Eastern Europe, Preprivatisation’, European Economic Review, 38: 1327–49.CrossRefGoogle Scholar
  3. Aghion, P., O. Blanchard and W. Carlin (1994b) ‘The Economics of Enterprise Restructuring in Central and Eastern Europe’, Centre for Economic Policy Research Discussion Paper, 1058 (London: Centre for Economic Policy Research).Google Scholar
  4. Baer, H. and C. Gray (1995) ‘Debt as a Control Device in Transition Economies: The Experiences of Hungary and Poland’, (unpublished manuscript) (Washington, DC: World Bank).Google Scholar
  5. Begg, D. and R. Portes (1993) ‘Enterprise Debt and Financial Restructuring in Central and Eastern Europe’ European Economic Review, 37: 396–407.CrossRefGoogle Scholar
  6. Berg, A. (1994) ‘Does Macroeconomic Reform Cause Structural Adjustment? Lessons from Poland’, Journal of Comparative Economics, 18: 376–409.CrossRefGoogle Scholar
  7. Berglöf, E. and G. Roland (1995) ‘Bank Restructuring and Soft Budget Constraints in Financial Transition’, Centre for Economic Policy Research Discussion Paper, 1250 (London: Centre for Economic Policy Research).Google Scholar
  8. Bernanke, B. and M. Gertler (1990) ‘Financial Fragility and Economic Performance’, Quarterly Journal of Economics, 105 (1): 87–114.CrossRefGoogle Scholar
  9. Blanchard, O. and P. Aghion (1996) ‘On Insider Privatization’, European Economic Review, 40: 759–66.CrossRefGoogle Scholar
  10. Bofinger, P. (1992) ‘The Experience with Monetary Policy in an Environment with Strong Microeconomic Distortions’, Economic Systems 16 (2): 247–68.Google Scholar
  11. Bonin, J. and M. Schaffer (1995) ‘Banks, Firms, Bad Debts, and Bankruptcy in Hungary 1991–94’, Centre for Economic Performance, London School of Economics, Working Paper No. 657 (London: Centre for Economic Performance).Google Scholar
  12. Borensztein, E. and P. Montiel (1991) ‘Savings, Investment, and Growth in Eastern Europe’, IMF Working Paper, 91/61.Google Scholar
  13. Bruno, M. (1992) ‘Stabilization and Reform in Eastern Europe’, IMF Staff Papers, 39/4 (Washington, DC: International Monetary Fund) 741–77.Google Scholar
  14. Calvo, G.A. and F. Coricelli (1994) ‘Credit Market Imperfections and Output Response in Previously Centrally Planned Economies’, in G. Caprio, D. Folkerts-Landau and T. Lane (eds), Building Sound Finance in Emerging Market Economies (Washington, DC: International Monetary Fund and World Bank) 257–94.Google Scholar
  15. Calvo, G.A. and F. Coricelli (1993) ‘Output Collapse in Eastern Europe: The Role of Credit’, IMF Staff Papers, 40: 32–52.CrossRefGoogle Scholar
  16. Calvo, G.A. and M. Kumar (1993) ‘Financial Markets and Intermediation’, in Financial Sector Reforms and Exchange Arrangements in Eastern Europe, International Monetary Fund Occasional Paper, 102 (Washington, DC: International Monetary Fund).CrossRefGoogle Scholar
  17. Calvo, G.A. and M. Kumar (1994) ‘Money Demand, Bank Credit, and Economic Performance in Former Socialist Economies’, IMF Staff Papers, 41/2: 314–49 (Washington, DC: International Monetary Fund).Google Scholar
  18. Carlin, W., J. Reenen and T. Wolfe (1995) ‘Enterprise Restructuring in the Transition: An Analytical Survey of the Case Study Evidence From Central and Eastern Europe’, World Bank Working Paper, 14 (Washington, DC: World Bank).Google Scholar
  19. Cashin, P. and C.J. McDermott (1995) ‘Informational Efficiency in Developing Equity Markets’, IMF Working Paper, 95/58 (Washington, DC: International Monetary Fund).Google Scholar
  20. Chadha, B. and F. Coricelli (1994) ‘Fiscal Constraints and the Speed of Transition’, Centre for Economic Policy Research Discussion Paper, 993 (London: Centre for Economic Policy Research).Google Scholar
  21. Corbett, J. and C. Mayer (1992) ‘Financial Reform in Eastern Europe: Progress with the Wrong Model’, Oxford Review of Economic Policy, 7/4: 57–76.CrossRefGoogle Scholar
  22. Dittus, P. (1994) ‘Corporate Governance in Central Europe: The Role of Banks’, BIS Economic Papers, 42 (Basil, Switzerland).Google Scholar
  23. Dittus, P. (1996) ‘Why East European Banks Don’t Want Equity’, European Economic Review, 40: 655–62.CrossRefGoogle Scholar
  24. EBRD (1994, 1995) Transition Report (London: European Bank for Reconstruction and Development).Google Scholar
  25. Fries, S. and T. Lane (1994) ‘Financial and Enterprise Restructuring in Emerging Market Economies’, in G. Caprio, D. Folkerts-Landau and T. Lane (eds), Building Sound Finance in Emerging Market Economies (Washington, DC: International Monetary Fund) 21–46.Google Scholar
  26. Gomulka, S. (1994) ‘The Financial Situation of Enterprises and its Impact on Monetary and Fiscal Policies, Poland 1992–93’, Economics of Transition, 2 /2: 189–208.CrossRefGoogle Scholar
  27. Grosfeld, I. (1994) ‘Financial Systems in Transition: Is There a Case for a Bank Based System?’, Centre for Economic Policy Research Discussion Paper, 1062 (London: Centre for Economic Policy Research).Google Scholar
  28. Grosfeld, I. and G. Roland (1995) ‘Defensive and Strategic Restructuring in Central European Enterprises’, Centre for Economic Policy Research Discussion Paper, 1135 (London: Centre for Economic Policy Research).Google Scholar
  29. Hughes, G. and P. Hare (1994) ‘The International Competitiveness of Industries in Bulgaria, Czechoslovakia, Hungary, and Poland’, Oxford Economic Papers, 46: 200–21.Google Scholar
  30. IMF, International Financial Statistics various issues (Washington, DC: International Monetary Fund).Google Scholar
  31. Johnson, S. and G. Loveman (1994) ‘Private Sector Development in Poland: Shock Therapy and Starting Over’, Comparative Economic Studies, 36: 175–84.CrossRefGoogle Scholar
  32. Long, M. and S. Sagari (1991) ‘Financial Reform in Socialist Economies in Transition’, World Bank Working Paper, 711 (Washington, DC: International Monetary Fund).Google Scholar
  33. McKinnon, R. (1993) The Order of Economic Liberalization Financial Control in the Transition to a Market Economy (Baltimore: Johns Hopkins University Press).Google Scholar
  34. Mayhew, K. and P. Seabright (1992) ‘Incentives and the Management of Enterprises in Economic Transition: Capital Markets are not Enough’, Centre for Economic Policy Research Discussion Paper, 640 (London: Centre for Economic Policy Research).Google Scholar
  35. Neave, E., L. Johnson and B. Pazderka (1994) ‘Financial Governance in Transition Economies’, Queens University School of Business Working Paper, 94–13 (Kingston, Ontario: Queens University).Google Scholar
  36. Perotti, E. (1993) ‘Bank Lending in Transition Economies’, Journal of Banking and Finance, 17: 1021–32.CrossRefGoogle Scholar
  37. Perotti, E. (1994a) ‘A Taxonomy of Post-socialist Financial Systems: Decentralized Enforcement and the Creation of Inside Money’, Economics of Transition, 2 /1: 71–81.CrossRefGoogle Scholar
  38. Perotti, E. (1994b) ‘Collusive Arrears in Transition Economies’ (unpublished manuscript).Google Scholar
  39. Pinto, B., M. Belka and S. Krajewski (1993) ‘Transforming State Enterprises in Poland: Microeconomic Evidence on Adjustment by Manufacturing Firms’, Brookings Papers on Economic Activity: Macroeconomics, Vol. 1.Google Scholar
  40. Rodrik, D. (1995) ‘The Dynamics of Political Support for Reform in Economies in Transition’, Centre for Economic Policy Research Discussion Paper, 1115 (London: Centre for Economic Policy Research).Google Scholar
  41. Rostowski, J. (1993) ‘Creating Stable Monetary Systems in Post-Communist Economies’, Centre for Economic Performance Discussion Paper, 141 (London: Centre for Economic Policy Research).Google Scholar
  42. Ruggerone, L. (1996) ‘Unemployment and Inflationary Finance Dynamics at the Early Stages of Transition’, Economic Journal, 106: 483–94.CrossRefGoogle Scholar
  43. Schaffer, M. (1995) ‘Government Subsidies to Enterprises in Central and Eastern Europe: Budgetary Subsidies and Tax Arrears’, Centre for Economic Policy Research Discussion Paper, 1144 (London: Centre for Economic Policy Research).Google Scholar
  44. Sinn, H. and G. Sinn (1992) Jumpstart (Cambridge, Mass.: MIT Press).Google Scholar
  45. Stiglitz, J. and A. Weiss (1981) ‘Credit Rationing in Markets with Imperfect Information’, American Economic Review, 71: 393–410.Google Scholar
  46. Székely, I. (1993) ‘Economic Transformation and the Reform of the Financial System in Central and Eastern Europe’, Centre for Economic Policy Research Discussion Paper, 816 (London: Centre for Economic Policy Research).Google Scholar
  47. Thorne, A. (1993) ‘Eastern Europe’s Experience with Banking Reform: Is There a Role for Banks in the Transition?’, Journal of Banking and Finance, 17: 959–1000.CrossRefGoogle Scholar
  48. van Wijnbergen, S. (1992) ‘Enterprise Reform in Eastern Europe’, Centre for Economic Policy Research Discussion Paper, 738 (London: Centre for Economic Policy Research).Google Scholar

Copyright information

© International Development Research Centre 1998

Authors and Affiliations

There are no affiliations available

Personalised recommendations