In 1989 the post-Communist countries of Eastern Europe opened their economies by establishing more open exchange rate policies and exchange controls and eliminating prohibitive tariffs and quotas. Now trying to join the integrated world economy, they are facing the challenge of finding strategic alliances and attracting foreign capital. This book analyzes economic policy in Eastern Europe with a focus on the financial arrangement of currency boards. It examines the main challenges facing East European countries, their economic policy strategies, the main challenges to the economies that adopted currency boards, and whether currency boards were a solution.

The book is organized into two parts. Part I addresses the challenges to economic policy in Eastern Europe, and Part II turns to the discussion of currency board arrangements.

Two of the most important economic processes at work in recent years are the globalization of the world economy and the economic transition in Central and Eastern Europe and the former Soviet Union. This book analyses the transition process from a comparative perspective and places these changes within the wider framework of globalization. It assesses the problems of transition faced by business and governments to better understand the direction in which future economic and political policy should move for improved growth. It evaluates the current stage of economic development in the transitional countries and discusses trends in the world economy since the early 1990s. Specifically, it addresses trends in global and regional development strategies, government policies, privatization, foreign investment and external balances. The authors then analyse the future prospects for economic and political relations between Eastern Europe and the European Union, the World Trade Organization and the international community as a whole. Some of the specific issues they focus on include US industrial competitiveness policy, economic nationalism, privatization in Eastern Europe, venture capital activities, the required economic conditions for Eastern European countries to join the European Union, regionalism and industrial policy for Eastern Europe, and lessons to be learned from the Japanese and Hong Kong transformations, as well as a comparative assessment of some political aspects of the economic strategies in Japan and Germany. Eastern Europe and the World Economy will be welcomed by scholars and students interested in the economics of transition, comparative economic systems, international economics and development economics, as well as by policymakers and government officials.

The post-communist European countries have faced enormous political and economic problems in attempting the transformation to a market oriented economy through two of the most important channels influencing this process--privatization and foreign investments. Focusing on Russia, the Czech Republic, Hungary, Bulgaria, and Poland, the authors examine the trends toward privatization and the problems facing the countries economic managers and foreign investors. They explore what can be done to increase foreign direct and equity investment given the political risks involved in the economic transformation. Scholars and students of international economics, international trade, Russian and Eastern European studies, and government and international agencies should find this study on the relationship between privatization and foreign investment informative and useful.

This work, written by a scholar and consultant who has worked extensively in Central and Eastern Europe, presents important background information and analysis on the economic and political changes that are taking place in that part of the world. The author's work is based on research conducted at the Department of Economics at Harvard University. The book provides the basis for future evaluation of the changes in post-communist economies. It discusses the radical changes in Europe, economic reforms in Eastern Europe and the former USSR, economic development strategies, and theoretical and policy issues on currency convertibility in post-communist economies.

In this book, Iliana Zloch-Christy analyzes the causes and consequences of the massive Eastern European debt to the West accumulated in the 1970s. In assessing the region's convertible-currency debt problem, the author addresses: the origins of the debt being essential to Eastern Europe's economic development; the effects of the countries' own adjustments to the problem; and Western policies toward resolving the Eastern European debt during the rest of the 1980s. During the 1970s, Eastern European countries increased their borrowing from the West considerably in order to modernize their economies and improve the competitiveness of their goods in Western markets. The degrees of liberalization of convertible-currency imports and borrowing in the individual countries differed depending upon internal political choices. Poland, Hungary, and German Democratic Republic (GDR), and Romania borrowed heavily, whereas Bulgaria, Czechoslovakia, and the Soviet Union were comparatively cautious. It was expected that the resulting debts in all of these countries would be re-paid through increased exports in the late 1970s and early 1980s.

In this 1988 book, Iliana Zloch-Christy analyzes the causes and consequences of the massive Eastern European debt to the West accumulated in the 1970s. In assessing the region's convertible-currency debt problem, the author addresses five main issues: the origins of the debt; the possibility that such a debt was essential to Eastern Europe's economic development; the effects of the countries' own adjustments to the problem; Western policies toward resolving the Eastern European debt difficulties; and the outlook for the debt during the rest of the 1980s. This book evaluates the flaws of the centrally planned economies that led to the crisis, as well as the countries' lack of effective structural adjustment. The author also covers the roles of the International Monetary Fund and the World Bank, and looks at the potential debt consequences of resurging East-West trade.

In this book, Iliana Zloch-Christy analyses the problems of Eastern Europe's convertible currency external debt situation and its impact on the financing of East-West trade in the late 1980s and early 1990s. This book, published in 1991, is a continuation of Dr Zloch Christy's Debt Problems of Eastern Europe (1987) and is the first study of the complexities of East-West trade and finance in this period. The author addresses four main issues. First, she examines market-oriented reforms in Eastern Europe's economic system and the changes that took place in East-West political relations. Dr Zloch-Christy then assesses whether convertible currency debt problems are an inherent part of the economic development of Eastern Europe, and if the problems are region-wide, and she discusses the strategies adopted to deal with them. She continues by exploring the extent to which the problems which arose from indebtedness affected the financing of East-West trade. Finally, the author assesses medium- and long-term debt prospects at this time, both for Eastern Europe as a whole and for each country within the CMEA.

In this book, Iliana Zloch-Christy analyses the problems of Eastern Europe's convertible currency external debt situation and its impact on the financing of East-West trade in the late 1980s and early 1990s. This book, published in 1991, is a continuation of Dr Zloch Christy's Debt Problems of Eastern Europe (1987) and is the first study of the complexities of East-West trade and finance in this period. The author addresses four main issues. First, she examines market-oriented reforms in Eastern Europe's economic system and the changes that took place in East-West political relations. Dr Zloch-Christy then assesses whether convertible currency debt problems are an inherent part of the economic development of Eastern Europe, and if the problems are region-wide, and she discusses the strategies adopted to deal with them. She continues by exploring the extent to which the problems which arose from indebtedness affected the financing of East-West trade. Finally, the author assesses medium- and long-term debt prospects at this time, both for Eastern Europe as a whole and for each country within the CMEA.