01811cas a2200253 a 4500 AALejournalIMF009637 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868074 1018-5941 BD-DhAAL BD-DhAAL Schellekens, Philip. Finance and Convergence : What's Ahead for Emerging Europe? / Philip Schellekens, Rudolfs Bems. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (41 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 singles out the key short-term risks and medium-term challenges related to finance and convergence in emerging Europe. With the help of a general equilibrium theoretical framework, the paper identifies pragmatic directions for policymakers. While the "speed limits" to capital inflows may be hard to determine, the costs of breaking them are likely substantial. To ensure "safe driving," policymakers ought to build buffers and reduce vulnerabilities. Equally important, yet often overlooked, is the need to prepare for "the curve ahead"-the reversal of external current account imbalances. To avoid painful adjustments, flexible factor markets and strong financial systems will be more important than ever. Mode of access: Internet Bems, Rudolfs. IMF Working Papers; Working Paper ; No. 2007/244 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/244/001.2007.issue-244-en.xml IMF e-Library