While policy makers need to be focused on achieving and sustaining
basic macroeconomic stability in the transition of economies from a
socialist to a market orientation, financial institutions and
reforms play a particularly crucial role in this transformation.
The essays in this collection offer overviews of issues in banking
sector reform and capital markets as well as specific perspectives
on the financial sectors in changing economies of Central and
Eastern Europe, China and Israel. The editors and contributors
explore the questions of how much focus needs to be given to
macroeconomic stabilization vis-a-vis the dynamics of the financial
sector, what may be appropriate time frames for dealing with
immediate and longer-term financial problems, and how trends toward
economic globalization interact with financial development in
transition countries. Original versions of the essays were
presented at the Second Dubrovnik Conference on Transition
Economies organized by the National Bank of Croatia in June 1996.
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