Financial developments in emerging Europe

Emerging Europe needs to ensure factor markets are flexible and financial systems strong to avoid painful economic adjustments, International Monetary Fund (IMF) research finds.

Policymakers, the research argues, ought to build buffers and reduce vulnerabilities and should prepare for the reversal of external current account imbalances.

Another paper by the Fund predicts that EU integration will propel further reforms and shape financial developments in those emerging economies that are members

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