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The Financial Context for Foreign Investment

In: Foreign Investment in Russia and Other Soviet Successor States

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  • Stephen Lewarne

Abstract

The economies of the Soviet Successor States (SSS) are in transition from command-administrative systems in which only limited markets existed, and in which money and financial phenomena played only a passive role, to market systems where the money supply and interest rates are expected to exert an active influence on the economy. The advent of macroeconomics in these transitional economies presents new problems for policy-makers in influencing the direction of their economies. One of the most important new policy variables for policy-makers in these emerging states is inflation. How the policy-makers deal with this problem is crucial to the activities of foreign investors.

Suggested Citation

  • Stephen Lewarne, 1996. "The Financial Context for Foreign Investment," Palgrave Macmillan Books, in: Patrick Artisien-Maksimenko & Yuri Adjubei (ed.), Foreign Investment in Russia and Other Soviet Successor States, chapter 4, pages 73-107, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24892-6_4
    DOI: 10.1007/978-1-349-24892-6_4
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