Çağatay Bircan, Ralph De Haas, Hans Peter Lankes, Alexander Plekhanov, 10 November 2015

In the wake of the Global Crisis, emerging Europe has experienced a sharp drop in investment levels. As a result, income convergence has virtually come to a halt. This column presents key findings of the EBRD’s latest Transition Report, urging countries in emerging Europe to rebalance their financial systems in order to reignite economic growth. Rebalancing is necessary in terms of the available debt–equity mix, the currency composition of credit, banks’ funding sources, and cross-border investment partners.

Ralph De Haas, Yevgeniya Korniyenko, Elena Loukoianova, Alexander Pivovarsky, 04 April 2012

Depending on which way you look at it, international banking either provided stability in countries where domestic banks failed or provided instability in otherwise well-run financial sectors. This column looks at the experience of Europe’s emerging economies. It argues that the latest Vienna Initiative aimed at improved coordination and information-exchange between banks is essential for financial stability in the region.

Michael Landesmann, Vladimir Gligorov, 26 June 2010

As the debate rages over the best path for fiscal policy, this column looks at the causes of the Eurozone crisis, especially in emerging Europe. It argues that despite the debate focusing on public debt, the key issue is the development of private debt. That suggests that the key policy remedy would be private debt consolidation supported by countercyclical fiscal policy.

Johan Mathisen, Srobona Mitra, 25 May 2010

In contrast to much of the emerging world, capital inflows to emerging Europe continue to be weak and mixed. How should the region ensure a healthy level of foreign investment while preventing excessive capital inflows and improving the stability of the financial sector? This column argues a comprehensive policy response is needed and recommendations should be tailored to country-specific circumstances.

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