01827cas a2200253 a 4500 AALejournalIMF000100 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848946 1018-5941 BD-DhAAL BD-DhAAL Schadler, Susan. Interest Rate Policy in Central and Eastern Europe : The Influence of Monetary Overhangs and Weak Enterprise Discipline / Susan Schadler, Adam Bennett. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Interest rate policy in the newly reforming Central and Eastern European countries has generally been geared toward establishing positive real interest rates and defending the exchange rate. The principal instrument for this task has been administrative increases in controlled interest rates. This paper examines the effect of these adjustments on inflation, the real interest rate and the exchange rate. It points out the risk that when financial discipline over enterprises is weak raising nominal interest rates may do little more than raise credit growth, the rate of depreciation and ultimately inflation. Simulations attempt to shed light on the importance of these linkages. Mode of access: Internet Bennett, Adam. IMF Working Papers; Working Paper ; No. 1992/068 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/068/001.1992.issue-068-en.xml IMF e-Library