The Financial Context for Foreign Investment

Stephen Lewarne

Chapter 4 in Foreign Investment in Russia and Other Soviet Successor States, 1996, pp 73-107 from Palgrave Macmillan

Abstract: Abstract The economies of the Soviet Successor States (SSS) are in transition from command-administrative systems in which only limited markets existed, and in which money and financial phenomena played only a passive role, to market systems where the money supply and interest rates are expected to exert an active influence on the economy. The advent of macroeconomics in these transitional economies presents new problems for policy-makers in influencing the direction of their economies. One of the most important new policy variables for policy-makers in these emerging states is inflation. How the policy-makers deal with this problem is crucial to the activities of foreign investors.

Keywords: Foreign Direct Investment; Monetary Policy; Commercial Bank; Monetary Authority; Transitional Economy (search for similar items in EconPapers)
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-24892-6_4

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DOI: 10.1007/978-1-349-24892-6_4

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