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Financial Reform in Eastern Europe: Progress with the Wrong Model

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  • Corbett, Jenny
  • Mayer, Colin

Abstract

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.

Suggested Citation

  • Corbett, Jenny & Mayer, Colin, 1991. "Financial Reform in Eastern Europe: Progress with the Wrong Model," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 7(4), pages 57-75, Winter.
    • Handle: RePEc:oup:oxford:v:7:y:1991:i:4:p:57-75
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • P59 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Other

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