The Payments Systems Reforms and Monetary Policy in Emerging Market Economies in Central and Eastern Europe

The paper discusses the interrelationships between payments system reform and monetary policy implementation in selected countries in Central and Eastern Europe. The reforms in the payments system are viewed as closely interrelated with the development of money and foreign exchange markets and the instruments of monetary policy used by the central banks. Large and variable float balances created special challenges. The paper shows that while departing from very similar origins, there were significant variations in experiences of the countries studied in transforming their payments systems after the start of the reforms towards a market economy, from which certain lessons can be drawn.Payment systems;Czechoslovakia;Bank reforms;Emerging markets;Central and Eastern Europe;payments, central bank, credit, monetary policy, monetary management, money market, reserve requirements, money markets, monetary fund, checks, clearing banks, national bank, inflation, monetary control, payment system, liquidity management, current account, monetary policy implementation, government securities, monetary statistics, money stock, monetary policy implications, queuing, credit transfers, current account balances, reserve requirement, repo, monetary instruments, government securities markets, open market operations, clearing houses, pricing, monetary targets, demand for money, systemic risk, monetary unification, monetary policy instruments, refinancing, money movements, reverse repo, money demand, reserve positions, money supply, monetary authorities, monetary union, counterpart, confirmation