Credit Markets, Credibility, and Economic Transformation
This paper focuses on the special role that capital markets play in the transformation of centrally planned economies into well-functioning market economies. We demonstrate that underdeveloped credit markets inhibit the effectiveness of price reform, monetary and credit policies, and trade liberalization. We explore various ways to overcome the difficulties associated with the underdeveloped credit markets. In this regard, we examine the implications of "cleaning" the balance sheets of enterprises and banks from nonperforming loans, as well as ways to enhance credibility. The paper concludes with a brief discussion of sequencing of economic reform measures.
Volume (Year): 5 (1991)
Issue (Month): 4 (Fall)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacob A. Frenkel & Guillermo Calvo, 1991. "From Centrally-Planned to Market Economies; The Road from CPE to PCPE," IMF Working Papers 91/17, International Monetary Fund.
- Jacob A. Frenkel & Guillermo Calvo, 1991.
"From Centrally-Planned to Market Economies; The Road from CPE to PCPE,"
IMF Working Papers
91/17, International Monetary Fund.
- Guillermo A. Calvo & Jacob A. Frenkel, 1991. "From Centrally-Planned to Market Economies: The Road from CPE to PCPE," NBER Working Papers 3698, National Bureau of Economic Research, Inc.