DP841 Constraints on Enterprise Liquidity and their Impact on the Monetary Sector in Formerly Centrally Planned Economies

Author(s):	István Abel, Pierre L Siklos
Publication Date:	December 1993
Keyword(s):	Credit Crunch, East European, Economic Transformation, Trade Credit
JEL(s):	E51, G32, H32, P52
Programme Areas:	Applied Macroeconomics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=841

This paper demonstrates that the monetary policy of the National Bank of Hungary is restrictive and has ignored the liquidity problems raised by the overhang of inter-enterprise liquidity. The implication is that the success of the transition to market is thereby jeopardized.