Financial Reform in Eastern Europe: Progress with the Wrong Model
Eastern Europe is engaged in a massive program of financial reform. This paper argues that while this program has many desirable features, it has failed to address some of the most basic issues. These concern the relationship between the financial system and the enterprise sector, and the association of privatization with financial sector reform. The paper suggests that there is a choice between finanical systems that has not as yet been adequately considered and that it is far from evident that Eastern Europe is at present proceeding with the right model. Copyright 1991 by Oxford University Press.
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