Edited by David G. Dickinson, Director of Money, Banking and Finance and Senior Lecturer, Department of Economics and Andrew W. Mullineux,The Business School, University of Birmingham, UK

• ContentsPreface and acknowledgements 1 Financial integration between the EU and the economies of Central and Eastern Europe: an overviewDavid G. Dickinson and Andrew W. MullineuxPART I MONETARY AND EXCHANGE RATE POLICY2 Monetary policy and economic development in transitional economies Maxwell J. Fry3 The Czech approach to inflation targeting Miroslav Hrncÿ’rÿ and Katerÿina Sÿm’dkov‡4 The link between FEER and fiscal policy in a transitional period: the case of the Czech economy Katerÿina Sÿm’dkov‡5 Interest rate policy and inflation behaviour in the Czech Republic: from exchange rate to inflation targeting Eric Girardin and Nicholas Horsewood6 Latvia on the way to the European Union: economic policy convergence Inna Sÿteinbuka7 Monetary policy prospects and Maastricht criteria in Lithuania before accession to the EU Salomeúja Jasinskaiteú, Dalia Vidickieneú and Rasa Melnikieneú8 The currency board regime in Bulgaria and its sustainability Tatiana Houbenova9 EMU convergence criteria and international flows of capital: the dilemmas for Polish macroeconomic policy Boguslaw Grabowski and Jerzy Pruski10 The Asian financial crisis and lessons for CEE economies David G. Dickinson and Andrew W. Mullineux11 Joining EMU as an irreversible investment David G. Dickinson and Jean-Baptiste DesquilbetPART II FINANCIAL SECTOR DEVELOPMENT12 Financial stability and economic development in transitional economies Maxwell J. Fry13 Payment systems and economic development in transitional economies Maxwell J. Fry14 Mobilization of savings in transition countries: the case of Lithuania Dalia Vidickieneú, Salomeúja Jasinskaiteú and Rasa Melnikieneú15 The Polish banking sector and EU regulations Andrzej Raczko16 Banking sector restructuring and debt consolidation in the Czech Republic Roman Matousÿek17 Market efficiency in transition economies: equity markets and EU accession Nicholas Horsewood and Douglas Sutherland18 Risk and optimal interest margins: the case of commercial banks in Central Europe Daniel Goyeau, Alain Sauviat and Amine Tarazi19 The impact of market structure and efficiency on bank profitability: an empirical analysis of banking industries in Central and Eastern Europe CŽline Gondat-Larralde and Laetitia Lepetit20 Convergence between the financial systems of EU member states and applicant transition economies Victor Murinde, Juda Agung and Andrew W. MullineuxIndex

Edited by David G. Dickinson, Director of Money, Banking and Finance and Senior Lecturer, Department of Economics and Andrew W. Mullineux,The Business School, University of Birmingham, UK

• ContentsPreface and acknowledgements 1 Financial integration between the EU and the economies of Central and Eastern Europe: an overviewDavid G. Dickinson and Andrew W. MullineuxPART I MONETARY AND EXCHANGE RATE POLICY2 Monetary policy and economic development in transitional economies Maxwell J. Fry3 The Czech approach to inflation targeting Miroslav Hrncÿ’rÿ and Katerÿina Sÿm’dkov‡4 The link between FEER and fiscal policy in a transitional period: the case of the Czech economy Katerÿina Sÿm’dkov‡5 Interest rate policy and inflation behaviour in the Czech Republic: from exchange rate to inflation targeting Eric Girardin and Nicholas Horsewood6 Latvia on the way to the European Union: economic policy convergence Inna Sÿteinbuka7 Monetary policy prospects and Maastricht criteria in Lithuania before accession to the EU Salomeúja Jasinskaiteú, Dalia Vidickieneú and Rasa Melnikieneú8 The currency board regime in Bulgaria and its sustainability Tatiana Houbenova9 EMU convergence criteria and international flows of capital: the dilemmas for Polish macroeconomic policy Boguslaw Grabowski and Jerzy Pruski10 The Asian financial crisis and lessons for CEE economies David G. Dickinson and Andrew W. Mullineux11 Joining EMU as an irreversible investment David G. Dickinson and Jean-Baptiste DesquilbetPART II FINANCIAL SECTOR DEVELOPMENT12 Financial stability and economic development in transitional economies Maxwell J. Fry13 Payment systems and economic development in transitional economies Maxwell J. Fry14 Mobilization of savings in transition countries: the case of Lithuania Dalia Vidickieneú, Salomeúja Jasinskaiteú and Rasa Melnikieneú15 The Polish banking sector and EU regulations Andrzej Raczko16 Banking sector restructuring and debt consolidation in the Czech Republic Roman Matousÿek17 Market efficiency in transition economies: equity markets and EU accession Nicholas Horsewood and Douglas Sutherland18 Risk and optimal interest margins: the case of commercial banks in Central Europe Daniel Goyeau, Alain Sauviat and Amine Tarazi19 The impact of market structure and efficiency on bank profitability: an empirical analysis of banking industries in Central and Eastern Europe CŽline Gondat-Larralde and Laetitia Lepetit20 Convergence between the financial systems of EU member states and applicant transition economies Victor Murinde, Juda Agung and Andrew W. MullineuxIndex

Edited by David G. Dickinson, Director of Money, Banking and Finance and Senior Lecturer, Department of Economics and Andrew W. Mullineux,The Business School, University of Birmingham, UK

• ContentsPreface and acknowledgements 1 Financial integration between the EU and the economies of Central and Eastern Europe: an overviewDavid G. Dickinson and Andrew W. MullineuxPART I MONETARY AND EXCHANGE RATE POLICY2 Monetary policy and economic development in transitional economies Maxwell J. Fry3 The Czech approach to inflation targeting Miroslav Hrncÿ’rÿ and Katerÿina Sÿm’dkov‡4 The link between FEER and fiscal policy in a transitional period: the case of the Czech economy Katerÿina Sÿm’dkov‡5 Interest rate policy and inflation behaviour in the Czech Republic: from exchange rate to inflation targeting Eric Girardin and Nicholas Horsewood6 Latvia on the way to the European Union: economic policy convergence Inna Sÿteinbuka7 Monetary policy prospects and Maastricht criteria in Lithuania before accession to the EU Salomeúja Jasinskaiteú, Dalia Vidickieneú and Rasa Melnikieneú8 The currency board regime in Bulgaria and its sustainability Tatiana Houbenova9 EMU convergence criteria and international flows of capital: the dilemmas for Polish macroeconomic policy Boguslaw Grabowski and Jerzy Pruski10 The Asian financial crisis and lessons for CEE economies David G. Dickinson and Andrew W. Mullineux11 Joining EMU as an irreversible investment David G. Dickinson and Jean-Baptiste DesquilbetPART II FINANCIAL SECTOR DEVELOPMENT12 Financial stability and economic development in transitional economies Maxwell J. Fry13 Payment systems and economic development in transitional economies Maxwell J. Fry14 Mobilization of savings in transition countries: the case of Lithuania Dalia Vidickieneú, Salomeúja Jasinskaiteú and Rasa Melnikieneú15 The Polish banking sector and EU regulations Andrzej Raczko16 Banking sector restructuring and debt consolidation in the Czech Republic Roman Matousÿek17 Market efficiency in transition economies: equity markets and EU accession Nicholas Horsewood and Douglas Sutherland18 Risk and optimal interest margins: the case of commercial banks in Central Europe Daniel Goyeau, Alain Sauviat and Amine Tarazi19 The impact of market structure and efficiency on bank profitability: an empirical analysis of banking industries in Central and Eastern Europe CŽline Gondat-Larralde and Laetitia Lepetit20 Convergence between the financial systems of EU member states and applicant transition economies Victor Murinde, Juda Agung and Andrew W. MullineuxIndex