PAYMENTS SYSTEM REFORMS AND MONETARY-POLICY IN EMERGING MARKET ECONOMIES IN CENTRAL AND EASTERN-EUROPE

The paper discusses the interrelationships between payments system ref orm and monetary policy implementation in selected countries in Centra l and Eastern Europe. The reforms in the payments system are viewed as closely interrelated with the development of money and foreign exchan ge markets and the instruments of monetary policy used by the central banks. Large and variable float balances created special challenges. T he paper shows that while starting from very similar origins, there we re significant variations in experiences of the countries studied in t ransforming their payments systems after the start of the reforms towa rd a market economy, from which certain lessons can be drawn.