Banking, International Capital Flows and Growth in Europe

1. Front Matter

   Pages I-XIII

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2. Introduction

   1. Front Matter

      Pages 1-1

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   2. Introduction

      • Paul J. J. Welfens, Holger C. Wolf

      Pages 1-13

3. Banking in Europe and Growth

   1. Front Matter

      Pages 15-15

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   2. Banks, Capital Markets, R&D and Economic Growth in Europe

      • Paul J. J. Welfens

      Pages 17-80

   3. Policy Options for Prudential Supervision in Stage Three of Monetary Union

      • Johannes Priesemann

      Pages 81-119

   4. Banking, Privatization and Economic Growth in Russia

      • Evgeny Gavrilenkov

      Pages 121-141

   5. Historical Lessons of Foreign Banking in Eastern Europe The Case of Tsarist Russia

      • Peter Hertner

      Pages 143-165

   6. Restructuring and Privatization of Polish Banks

      • Miroslaw Bojanczyk

      Pages 167-182

   7. High Public Debt: Consequences for Investment and Growth

      • Timothy Lane

      Pages 183-215

4. International Capital Flows and Growth

   1. Front Matter

      Pages 217-217

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   2. Banking, Foreign Investment, Endogenous Growth and Systemic Transformation

      • Jozef M. van Brabant

      Pages 219-262

   3. Capital Flows in Eastern Europe: Some Lessons from the Emerging Markets in Latin America and Asia

      • Elmar B. Koch

      Pages 263-295

   4. Catching Up of Economies in Transformation

      • Thomas Gries, Stefan Jungblut

      Pages 297-316

   5. Savings, Credit Markets and Economic Growth in Europe

      • Holger C. Wolf

      Pages 317-351

   6. US Multinationals and Europe: An Update

      • Edward M. Graham

      Pages 353-377

   7. Multinational Investment and Economic Growth in Eastern Europe

      • Jan Stankovsky

      Pages 379-412

5. Panel Discussion: The Banks’ Role in Financing Economic Expansion in Eastern Europe

   1. Front Matter

      Pages 413-413

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   2. Recent Developments in the Hungarian Financial Sector

      • Rezsö Nyers

      Pages 415-425

   3. The Present Situation of the Banking Sector in the Transition Countries

      • Werner Varga

      Pages 427-430

Paul J.J. Welfens and Holger C. Wolf While the economies of Asia and, more recently, South as well as North America have enjoyed sustained high growth, the growth performance of western Europe and in particular continental Europe has been rather modest. Coupled with sizable improvements in labor productivity and - at best - steady capital productivity, growth proved insufficient to sustain employment levels, much less to replicate the US job creation success. Relative inflation performance has been much better: in the run-up to European Monetary Union inflation rates have dramatically converged towards the lower end of the distribution while risk premia on formerly high inflation economies have fallen. Yet, looking forward, the undoubted success in achieving price stability is mitigated by the lackluster growth -and in particular employment -performance. Indeed, the relative little attention paid to initiatives directed at raising economic growth is startling, not only in the light of the US policy record but also in light of the remarkable rebound of those European economies which have aggressively tackled the structural problems, most prominently the UK and Ireland.

• Banking
• Capital Markets
• EU
• East Asia
• Economic Development
• Financing
• Inflation
• Investment
• Options
• Portfolio

• University of Potsdam European Institute for International Economic Relations, Potsdam, Germany

  Paul J. J. Welfens

• Leonard N. Stern School of Business Management Education Center, New York University, New York, USA

  Holger C. Wolf

Policies and ethics