IMF Working Papers

Financing the Transition of Previously Centrally Planned Economies: Macroeconomic Effectson Western Europe

By Steven A. Symansky, Leonardo Bartolini

December 1, 1994

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Steven A. Symansky, and Leonardo Bartolini. Financing the Transition of Previously Centrally Planned Economies: Macroeconomic Effectson Western Europe, (USA: International Monetary Fund, 1994) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Under alternative assumptions on the likely developments in external financing of PCPE transition, and based on a multi-country, forward-looking model that includes a simplified PCPE block, we simulate the response of PCPEs to a transfer of capital from the industrial countries, and assess the potential implications for Western Europe over the next ten years. Real interest rates in Western Europe are likely to experience only mild upward pressure, and most macroeconomic aggregates are likely to change by substantially smaller magnitudes than typical over the business cycle.

Subject: Balance of payments, Capital flows, Consumption, Exports, Financial institutions, Imports, International trade, Loans, National accounts

Keywords: Capital flows, Capital-importing country, Consumption, Eastern Europe, Exports, Financing effort, Import constraint, Import shock, Imports, Investment equation, Investment relation counterpart, Investment scenario, Loans, PCPE model, PCPEs' investment, PCPEs' transition, Prototype capital-importing region, Relation counterpart, Trade balance, Transformation of Previously Centrally Planned Economies, Western Europe, WP

Publication Details

  • Pages:

    30

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1994/157

  • Stock No:

    WPIEA1571994

  • ISBN:

    9781451857443

  • ISSN:

    1018-5941

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