01890cas a2200253 a 4500 AALejournalIMF002690 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848724 1018-5941 BD-DhAAL BD-DhAAL Calvo, Guillermo. Obstacles to Transforming Centrally-Planned Economies : The Role of Capital Markets / Guillermo Calvo, Jacob Frenkel. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (19 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 This paper identifies obstacles hindering the transformation of centrally-planned economies (CPEs) into well-functioning market economies. The obstacles identified relate to (i) anticipatory dynamics, (ii) monetary overhang and the budget, and (iii) underdeveloped credit markets. It is demonstrated that these obstacles inhibit the effectiveness of price reform, monetary and credit policies, and trade liberalization. The analysis focuses on various ways to remove the obstacles. In this regard, a special examination is made of the implications of 'cleaning' the balance sheets of enterprises and banks from nonperforming loans, as well as ways to enhance credibility. The paper concludes with a brief discussion of sequencing, 'safety nets,' and their associated obstacles. Mode of access: Internet Frenkel, Jacob. IMF Working Papers; Working Paper ; No. 1991/066 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/066/001.1991.issue-066-en.xml IMF e-Library