| This dissertation focuses on the role of the monetary and financial system in the economies of Eastern Europe. It considers the functions of the monetary and financial systems within the context of central economic planning and analyzes the weaknesses and shortcomings of these systems in the centrally planned economies (CPEs) of Eastern Europe. The initial experiences of reform in the formerly centrally planned economies of Eastern Europe is analyzed both in terms of monetary stabilization and the process of financial intermediation.;In analyzing the monetary and financial systems in the economies of Eastern Europe, this dissertation contributes to an understanding of these systems both before and after the implementation of the reforms currently underway. The dissertation is organized as follows. Chapter II deals with the monetary and financial systems of a traditional centrally planned economy (CPE). Chapter III considers the problems faced by these systems in practice. In particular, the tendency of the CPE monetary system toward disequilibrium resulted from both the inherent weakness of the planning structure itself as well as the actual policies pursued by the authorities in the economies of Eastern Europe. Also, the role of economic activity outside of the planning structure is discussed. In Chapter IV, a simple monetary model is developed and tested for several Eastern European CPEs in order to draw basic conclusions about factors affecting money demand in these economies. Chapter V discusses the economic reforms implemented in Eastern Europe in the context of the monetary and financial system. This Chapter provides a preliminary analysis of the reform process in several of these countries, and serves as a guide to those countries in which reforms have not yet begun. Finally, some preliminary conclusions are drawn and suggestions for further research are made. |
