Mitra, PradeepSelowsky, MarceloZalduendo, Juan2012-03-192012-03-192010978-0-8213-8113-7https://hdl.handle.net/10986/2682This book, written on the eve of the 20th anniversary of the fall of the Berlin wall in 1989, addresses three questions that relate to recession, recovery, and reform, respectively, in Europe and Central Asia (ECA) transition countries. Did the transition from a command to a market economy and the period when it took place, plant the seeds of vulnerability that made transition countries (the region excluding Turkey) more prone to crisis than developing countries generally? Did choices made on the road from plan to market shape the ability of affected countries to recover from the crisis? What structural reforms do transition countries need to undertake to address the most binding constraints to growth in a world where financial markets have become more discriminating and where capital flows to transition and developing countries are likely to be considerably lower than before the crisis? This report is structured as follows: chapter one of the book analyses how countries fell into recession and crisis, why not all of them were equally affected, and whether different policies could have positioned them better to face the crisis. Chapter two discusses rescue and stabilization and the role of international collective action. The next two chapters focus on policies for recovery, chapter three on restructuring bank, corporate and household debt and chapter four on scaling up social safety nets. Chapters five and six focus on reform, examining the binding constraints to growth and the policy agenda in the most important sectors identified by that analysis.CC BY 3.0 IGOARBITRAGEASSET RATIOBALANCE SHEETBALANCE SHEETSBANK EXPOSUREBANK FOR INTERNATIONAL SETTLEMENTSBANK REGULATIONBANK RESTRUCTURINGBANK SUPERVISIONBANKING CRISESBANKING SECTORBANKING SECTOR ASSETSBANKING SECTORSBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBENEFICIARIESBENEFICIARYBOND SPREADSBUDGET CONSTRAINTSBUSINESS CYCLECAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MOVEMENTSCAPITAL REQUIREMENTSCENTRAL BANKCENTRAL BANKSCOLLECTIVE ACTIONCREDIBILITYCREDIT GROWTHCREDIT LOSSESCREDIT MARKETCREDITORSCURRENCY COMPOSITIONCURRENCY CRISESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT SURPLUSESDEBTDEBT FINANCINGDEBT RATIOSDEBT RESTRUCTURINGDEBT SERVICEDEBTORSDEMAND FOR CREDITDEPOSITDEPOSIT INSURANCEDEPOSIT INSURANCE SCHEMESDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDOMESTIC BANKSDOMESTIC INTEREST RATESDOMESTIC MARKETDURABLEDURABLE GOODSECONOMIC DEVELOPMENTSEMERGING ECONOMIESEMERGING ECONOMYEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEMPLOYMENTENTERPRISE PERFORMANCEEXCHANGE RATEEXCHANGE RATESEXPENDITURESEXPORTERSEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL FUNDINGFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL INTEGRATIONFINANCIAL MARKETSFINANCIAL OPENNESSFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING SOURCESFISCAL DEFICITSFISCAL POLICYFLEXIBLE EXCHANGE RATEFLOATERSFOREIGN ASSETSFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN CURRENCY LOANSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN FINANCIAL INSTITUTIONSFOREIGN INVESTORSFOREIGN LENDERSGLOBAL ECONOMYGLOBAL FINANCEGLOBAL MARKETSGLOBAL TRADEGLOBALIZATIONHOLDINGSHOST COUNTRIESHOST COUNTRYHOUSINGINCOME LEVELSINDEBTEDNESSINFLATIONINFORMAL FINANCEINSTRUMENTINTEREST COVERAGE RATIOINTEREST RATEINTEREST RATESINTERNAL FINANCEINTERNATIONAL BANKINTERNATIONAL BANKINGINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL LENDINGINTERNATIONAL SETTLEMENTSINVESTMENT BANKINVESTMENT CLIMATEJUDICIAL SYSTEMJUDICIAL SYSTEMSLABOR MARKETSLEGAL ENVIRONMENTLEGAL FRAMEWORKLEGAL SYSTEMLEGAL SYSTEMSLEGISLATIONLENDERSLIQUID ASSETSLIQUIDATIONLIQUIDITYLIQUIDITY PROBLEMSLIVING STANDARDSLOANLOAN LOSS PROVISIONSLOAN PORTFOLIOLOCAL CURRENCYMACROECONOMIC CRISESMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMARKET ECONOMIESMARKET ECONOMYMARKET RISKSMARKET STRUCTUREMATURITIESMATURITYMONETARY FUNDMONETARY POLICIESMONETARY POLICYMORTGAGEMORTGAGE INTERESTMORTGAGE LOANSMORTGAGESNATIONAL CREDITNATURAL RESOURCESNONPERFORMING LOANSOIL PRICESOPEN ECONOMIESPOLICY RESPONSEPRIVATE CAPITALPRIVATE CREDITPRIVATE INVESTMENTPRIVATE SECTOR CREDITPRIVATIZATIONPRODUCTIVITYPROFITABILITYPROPERTY RIGHTSPRUDENTIAL SUPERVISIONPUBLIC DEBTPUBLIC EXPENDITURESPUBLIC FINANCESPURCHASING POWERREAL EXCHANGE RATERECAPITALIZATIONREGULATORY FORBEARANCEREGULATORY FRAMEWORKSREMITTANCEREMITTANCESREORGANIZATIONRESERVERESERVE REQUIREMENTSRETURNRETURN ON ASSETSRETURN ON EQUITYRISK FACTORSRULE OF LAWSAFETY NETSAFETY NETSSAVINGSSHORT-TERM DEBTSOCIAL SAFETY NETSSOVEREIGN BONDSTATE ENTERPRISESSUBSIDIARIESSUBSIDIARYSUPERVISORY AGENCYSUPPLIES OF CREDITSUPPLY OF CREDITSYSTEMIC BANKING CRISESTAXTAX ADMINISTRATIONTOTAL DEBTTRADINGTRANSITION COUNTRIESTRANSITION COUNTRYTRANSITION ECONOMIESTRANSPORTTREATYWITHDRAWALWORLD FINANCIAL MARKETSWorld Bank10.1596/978-0-8213-8113-7