Impact of Financial Deregulation on Monetary and Economic Policy in the Czech Republic, Hungary and Poland: 1990-2003

38 Pages Posted: 28 Jun 2014

Date Written: May 31, 2013

Abstract

The three countries took different stances in regards to economic policy; the Czech Republic pursued a shock therapy regime which aimed to stabilise the economy, Hungary’s policy was more relaxed whilst Poland had an aggressive reform programme. Regarding monetary policy the Czech Republic used the discount rate as a tool for monetary policy, Hungary used indirect monetary policy and Poland had strict monetary policies which raised interest rates and devalued the zloty. After financial deregulation the impact of economic and monetary policy led to positive economic growth in the Czech Republic year on year. Hungary had a similar experience whilst Poland had an initial high increase in economic growth. This reduced over time but they still recorded positive economic growth over the period studied.

Keywords: Transition Economies, Financial Deregulation, Economic Growth, Eastern Europe.

JEL Classification: E, E2, E4, E5, G, G15, G21

Suggested Citation

McGrath, Patricia, Impact of Financial Deregulation on Monetary and Economic Policy in the Czech Republic, Hungary and Poland: 1990-2003 (May 31, 2013). William Davidson Institute Working Paper No. 1049, Available at SSRN: https://ssrn.com/abstract=2304200 or http://dx.doi.org/10.2139/ssrn.2304200

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