Financial Liberalization and Business Cycles: The Experience of Countries in the Baltics and Central Eastern Europe

Arbeitspapier

This paper extends the work of Kaminsky and Schmukler (2003) to the Baltic and Central Eastern European future Member States of the European Union, to test if the same short-run increase in cyclical volatility arising from financial integration is observed in this specific sample of ?emerging markets?. This work finds some signs that, contrary to other emerging markets, this does not happen: for the future Member States, financial integration, similarly to the outcome observed in mature market economies, reduces cyclical volatility both in the short and in the long run. Weak indications are found that this may happen partially due to the anchoring of expectations provided by the EU Accession, and to the more robust institutional framework imposed by this process onto the countries in question.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series 1 ; No. 2004,23

Classification and Topics

• Classification: Wirtschaft ; International Lending and Debt Problems ; International Economic Order and Integration ; International Finance: General ; International Monetary Arrangements and Institutions ; Current Account Adjustment; Short-term Capital Movements ; Financial Aspects of Economic Integration ; International Financial Markets ; Socialist Systems and Transitional Economies: General
• Subject: Enlargement ; European Union ; financial liberalization ; booms ; busts ; cycles ; Bry-Boschan ; volatility ; Kapitalmarktliberalisierung ; Konjunktur ; Börsenkurs ; Volatilität ; Schätzung ; EU-Erweiterung ; Nordosteuropa ; Ostmitteleuropa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vinhas de Souza, Lúcio
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/19490
• Last update: 10.03.2025, 11:43 AM CET