VI Financial Sector Reforms and Stabilization Policies
Author: Mr. Guillermo Calvo1, Mr. Eduardo Borensztein, Mr. Paul R Masson, and Mr. Manmohan S. Kumar
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
OP; market; current account convertibility; stabilization policy; PCPEs; convertibility; price liberalization; market mechanism; privatization process; Exchange rates; Commercial banks; Exchange rate arrangements; Stock markets; Credit; Eastern Europe; Europe; Central and Eastern Europe; bank financing; interest rate spread; rate regime; bank portfolio; bank spread; Financial sector reform; Reserve requirements; Credit ceilings; Demand for money

Abstract

This section notes the close linkages between financial sector reform and the conduct of monetary policy, including the recent introduction of indirect instruments of monetary management, and the implications of reforms for the quantitative formulation of monetary targets. It assesses the contribution that financial sector reform can make to the conduct of fiscal policy, in particular, to the financing of budget deficits. The discussion also suggests that the maintenance of current account convertibility requires prompt reform in the financial sector to encourage supply response.

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Cover Financial Sector Reforms and Exchange Arrangements in Eastern Europe
Financial Sector Reforms and Exchange Arrangements in Eastern Europe
Author: Mr. Guillermo Calvo, Mr. Eduardo Borensztein, Mr. Paul R Masson, and Mr. Manmohan S. Kumar
ISBN:
9781557752796
ISSN:
0251-6365
Publication Date:
15 Feb 1993
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557752796.084
Pages:
66