Vietnam's current account deficit increased from less than 1 percent of GDP in 1992 to over 11 percent of GDP in 1996. This increased current account deficit has been accompanied by a rapid acceleration in economic growth from 1 percent in 1990 to 9 percent in 1995 and 1996. Were the existing...

The more liberal a country's foreign exchange system, the more foreign direct investment is likely to be independent of current account and other capital flows.Fry, Claessens, Burridge, and Blanchet examine flows of foreign direct investment to 46 developing countriesto test whether such flows...

The end of China's Cultural Revolution in December 1978 heralded a gradual process of economic liberalization and reform. In the financial sector, the monobank system was abandonded in favor of a two-tier banking system in which the People's Bank of China (PBC) became the central bank and its...

Twenty-two years ago, Ronald McKinnon and Edward Shaw highlighted some of the deleterious effects of financial repression--interest rate ceilings, high reserve requirements, directed credit policies, and discriminatory taxation of financial intermediaries. Both books presented some theoretical...

The implementation of monetary policy in Mauritius has changed dramatically over the past two decades. This paper starts by describing the original mechanism of implementing monetary policy from the establishment of the Bank of Mauritius in 1968 until the reforms of the 1990s. The description is...

In this paper I estimate the contemporaneous and lagged effects of FDI in Mauritius and East Asia on capital formation, national saving, imports, exports and economic growth. Dynamic simulations indicate that, despite the fact that FDI increases domestic investment, the positive direct and...

A decade ago, Central and Eastern European countries were isolated economically from Western economies and integrated among themselves through the Council for Mutual Economic Assistance (CMEA). Now that the CMEA along with Czechoslovakia, the Soviet Union and Yugoslavia have disintegrated, one...

The end of China's Cultural Revolution in December 1978 heralded the start of a gradual process of economic liberalization and reform. In the financial sector, the monobank system was abandoned in favor of a two-tier banking system in which the People's Bank of China (PBC) became the central...

This paper reviews the fiscal activities that governments in a sample of 26 developing countries have obliged their central banks to undertake. In the main, these activities fall under five categories: (1) collecting seigniorage; (2) imposing financial restriction; (3) implementing selective...