On The Chosen Path Of Financial Liberalization In The Central And Eastern European Transitional Countries In Early 1990s

Having been improved and perfected a lot since early 1970s, the theory of financial liberalization has become one of the important parts in modern financial theory. Meanwhile, financial liberalization has also been a basic feature of financial development worldwide. So the scholars and researchers from home and abroad have always been keeping an eye on it. Compared with the financial liberalization of countries in Latin America and Southeast Asia, the financial liberalization process in Central and Eastern European Countries(CEECs) is less mentioned and researched, some relevant researches are mainly related to the reform of the financial sector in CEECs and the issue of financial liberalization is researched in the frame of economy transition habitually. Based on the theory of financial liberalization, the paper tries to cast off this researching habit and explores the chosen path of financial liberalization in CEECs, and then explanation of the failure of this government-dominated institutional change is offered.This paper includes four parts. In the first part(Introduction), the theoretical and practical significance of this subject is introduced, the relevant research of scholars from home and broad is outlined, the structure of this paper is introduced, the main viewpoints and the author's creativity is also given.In the first part: Financial liberalization contains some basic issues which are the prerequisite, velocity, sequence and the financial supervision. Firstly, certain initial position is necessary for successful financial liberalization. The initial position can be interpreted as the overall economic and financial environment, which contains macro economic environment, micro economic basis and opportunity, when financial liberalization begins. Practically speaking, the effects of financial liberalization in most countries (or districts, the same to followings) are highly sensitive to the initial position and financial liberalization under incomplete initial position is always less effective, especially in transitional countries. Secondly, financial liberalization can be...