II Recent Developments and the Role of the Financial Sector
Author:
Mr. Guillermo Calvo https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Eduardo Borensztein
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Mr. Paul R Masson
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Mr. Manmohan S. Kumar
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Abstract

This section notes recent economic developments in the Eastern European countries, in particular, the sharp declines in output and real earnings. Among the reasons for the declines were the inevitable consequences of capital stock obsolescence and inefficiencies under the planned regimes, but problems in the financial sector, which led to an inadequate provision of credit to the enterprise sector, may also have been important.