Asia Pacific Economic Forum), Asia Pacific Economic Forum (APEC), 21,26 21,26 Argentina

Index

Agroprombank, 213 Argentine Congress to the Central Bank Anchor currency, 51 Charter Act (CBCA), 185 Euro as, 52 Articles of Termination mark as, 41, 43, 50 (Czechoslovakia),234 APEC (Asia Pacific Economic Forum), Asia Pacific Economic Forum (APEC), 21,26 21,26 Argentina. see also Argentine banking Association of South East Asian Nations panic (1994-1995) (ASEAN),21 fmancial history of, 183-184 Asymmetric information theory, 150- foreign reserves/monetary liabilities, 156 192 adverse selection, 150 Argentine banking panic (1994-1995), application of, 156-172 183-207,337. see also factors leading to crisis, 151-156 Convertibility Plan (Argentina) financial crisis defined, 151 banks, nominal capital asset ratios for, moral hazard, 151 202 Austria, 33, 42, 96 developments leading to (1994), 184, Azores conference (1972), 96 192-206 failing/merging banks, characteristics of, 203-206 B interaction between policy response/shock, 19 I Bahrain, 124 international interest rate evolution, Baker, James, 14 192-200 Balance sheets minimum capital regulations/new asset market effects on, 152-155 provisioning rules, 200-203 in bank panics, 155-156 Argentine Brady Bonds, 192-193 in Mexican peso crisis, 158, 159, 166 retail bank (Argentina), 196 344 INDEX

wholesale bank (Argentina), 195 Basle Capital Adequacy Accord (1988), Baldwin, Robert, 281 103,219,341 Banca d'Italia, 263 Basle Committee for Banks Regulation, Banco de Mexico, 161, 166,312 188 Bank for International Settlements (BIS), Basle Committee of Banking 15 Supervisors, 218 Annual report (1995), 341 Basle-Nyborg Agreement (1987), 45, 64 in Mexico, 3 13 Belgium, 96 in Russia, 218 in EMS, 118 Banking system (Russia), 339. see also financial equilibrium of, 264, 276, Central Bank of Russia (CBR) 277--278 banks in, 213--214,223--224 Belveshkaya Accord, 211 credit organizations, 214, 224 Benin, 127, 129--130 foreign banks in, 215--216 BIS. See Bank for International history of, 213--214, 215--217 Settlements (BIS) importance of, 212 Black Tuesday, 216 loans by, 212 Bonn summit (1978), 15 Bank ofItaly Brady Bonds, Argentine, 192--193 Annual Report (1979), 61 Brady plan (1989), 310 in 1992 crisis, 63, 64, 67 Bretton Woods System Economic Bulletins, 69, 75 demise of, 12--13 foreign exchange interventions, 65, 75 EMS compared, 43 monetarypolicyof(1992), 70, 72, 73, lessons learned from, 115, 116--118 74 policies of, 12, 115 Bank ofJapan, 105 Brittan, Leon, 25 Bank of Russia. see Central Bank of Budapest Stock Exchange, 243--244 Russia (CBR) Bundesbank Bank of the Central African states, 128 Annual Report (1990), 47--48 Bank panics, 155--156, 189. see also as Europe's central bank, 35--36 Argentine banking panic monetary policy of, 43, 44, 48--49, (1994-1995) 56--57, 131 Banks. see also specific banks role in EMS, 41, 42, 132 balance sheets of, 155--156, 159, role in EU, 33 166,195--196 Burkina Faso, 127, 130 cooperative/commercial joint-stock, 213 in emerging market countries, 156 c historical failures, 10--11 retail, 194, 196, 198, 202, 203--206 CAEMC (Central African Economic and spets, 213 Monetary Community), 127 supervisory systems for, 174--175, Camdessus, Michel, 20, 218, 323 221--222,224--225 Cameroon, 127, 130 wholesale, 194, 195, 197,202,206 Capital Banque de France, 99 convertibility, 317--319 Bardi, House of, 10 flows of, 23, 340 FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 345

mobility, 117, 131 CFA Franc zone (CFA), 127-131, 132 regulations, 184 benefits of membership, 128-129 Capital flow discrimination, 23 economic indicators, 129, 142 CBK. see Central Bank of Kuwait (CBK) exchange rate policies in, 116, 128 CBR. see Central Bank of Russia (CBR) intra-CFA zone trade, 130, 141 Central African Economic and Monetary members of, 127 Community (CAEMC), 127 recent performance of, 144 Central African Republic, 127 terms of trade/real effective exchange Central Bank of Argentina, 183-184, rate, 143 185, 186 Chili, 154 Central Bank of Kuwait (CBK), 282 Chubais, Anatoli, 217 bankinglfmancial sector revival, Ciampi, Governor Carlo Azeglio, 63, 72 286-291 Clearing Agreement (Czech bank support during occupation, 284 Republic/Slovak Republic), 238 Difficult Credit Facilities Settlement Clinton, President Bill, 26 Program, 290 CMEA trade, 230, 311 post-liberation preparation, 284-285 Collateral, 152-153, 176 preinvasion adjustments, 283 Comision Nacional Bancaria, 158-159 reorganization of banks during Committee of Governors (EMS), 59, 98 occupation, 283-284 Comoros, 127, 128 Central Bank of Russia (CBR), 212, 213 Compensatory and Contingency Conceptual Framework for the Financing Facility (lMF), 310 Stabilization and Improvement Competitive devaluations, 102 of the Reliability of the Banking Convertibility Plan (Argentina), 183- System, 223, 224 184 as lender-of-the-last resort, 225 additional regulations, 189-191 regulatory powers of, 214-215 banking regulations under, 185-191 supervisory plan (1996), 219-222, capital regulations, 184, 188-189, 224-225 200-203 Central Bank of the West African states, deposit insurance removal, 184, 128 185-186 Central banks. see also specific banks liquidity regulations, 184, 186-188 as bank regulators/supervisors, 175, success of, 185,206 221-222,224-225 and U.S. interest rates, 193 in emerging market countries, 179, Corporatism, 36-37 341 Corrigan, E. Gerald, 295 in European System of Central Banks, Cote d'Ivoire, 127, 130 51 Credit, excessive, 9 fixed exchange rate problems for, 42 Crises. see Financial crises G-7 country, 15, 18-19 Currencies, 21. see also specific jawboning by, 15-17 currencies as lenders-of-the-last resort, 173 basket, 118 reserves of. see Reserves foreign, in debt contracts, 177 ruling by fiat, 15, 17 replacing, 284, 286 sources of influence, 17 separation of, 233-238 346 INDEX

single. see Single currency De Silguy, European Commissioner for trade weighted basket, 124 Monetary Affairs, 34 Czech National Bank (CNB), 236, 237- d'Estaing, Valerie Giscard, 32,41,97 238 Devaluations, 154-155, 166, 170 Czechoslovakia, 241 Dinar (Kuwait), 284, 286, 288-289 economic transformation of, 227- Dispute settlement understanding (DSU) 232 mechanisms, 23 state/currency separation of, 232- Dollar crisis (1985), 14 238 Dollar deposits, 12-13, 194, 199,201 Czechoslovak Koruna (CSK) Dollar (Hong Kong), 31 devaluation of, 229, 230, 231 Dollar shocks, 55, 82-86 exchange rates, official and parallel, Dollar (US), 40 231 currencies pegged to, 31, 116, 124 Czechoslovak State Bank, 228, 230, 235 effective exchange rates (1990-1992), Czech Republic, 232-238, 337 65 foreign exchange reserves, 237 fmancial effective exchange rates of, government budget, balance of, 235 83,84 Slovak Republic economy compared, GCC currencies per, 140 233 gold-exchange standard for, 12 CZK (Czech Republic), 238 lira, influence on, 82-86 trade-weighted effective exchange rate (1990-1992), 83 D as world currency, 12,97, 104 Dubinin, Sergei, 217, 222, 223-225 Danish referendum, Maastricht Treaty, 49,56,64,99 Debt, public. see Public debt crises E Debt contracts, 154,212 currency denomination of, 177 ECB. see European Central Bank (ECB) duration of, 178 Economic and Monetary Union (EMU), non-performing bank loans, 159 56, 336. see also Debt markets, 153-154 European Union (EU) Declaration of the Interim Committee developmental scenarios for, 108- (lMF), 327, 330, 332, 109, 111-112 333 exchange policy of, 103-104 Deflation, 14 international monetary system reform, de Gaulle, General Charles, 97 104-105 Delors, Jacques, 44 relationship with nonmember Denmark, 33, 49, 118 countries, 102-103 Deposit insurance single currency in, 100--102 in Argentina, 183, 185-186 Switzerland, effect on, 109, 113 in Russia, 221, 224 Economic growth, 17 Depositors, protection of, 190 ECU, 41,42, 118, 131 Depressions, world, 10--11 EEC. see European Economic Deregulation, 175-176 Community (EEC) FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 347

Emergency Financing Mechanism (lMF), (1961-1994), 136 315,328 labor costs, nominal unit (1961-1995), Emerging market countries 135 banks in, 156,316,341 labor costs, real unit (1961-1995), crisis prevention policies for, 174- 121, 136 179 occupied population (1961-1995), 137 crisis recovery policies for, 172-174 price deflator (GDP at market prices), debt contracts in, 154-155, 173 133 economic characteristics of, 128 productivity growth (1977-1996), 138 IMF surveillance of, 316, 330--331 unemployment rate (1961-1995), 120, monetary policies for, 173 138 Tequila effect for, 187,328-333, wage share, adjusted (1961-1995), 337-339 139 EMS band, 97 European Economic Community (EEC) fluctuations in, 42 Finance Ministers meeting (Bath), 68 lira's position in, 85-86 history of, 40--43 margins widened (1993),50--51, 118 Monetary Committee meeting (Aug. parity adjustments in, 42 28, 1992), 68 EMS 11,107 monetary integration in, 40 EMU. see Economic and Monetary European Monetary System (EMS), 131. Union (EMU) see also Exchange Rate Enhanced Structural Adjustment Facility Mechanism, EMS (ERM) (lMF), 303, 307, 329-330 after EMU, 102-103 Equatorial Guinea, 127 benefits of, 43 ERM. see Exchange Rate Mechanism, Bretton Woods System compared, 43 EMS(ERM) crisis in (1992), 56, 59---60 ESB (European System of Central as de/acto monetary union, 47-48 Banks), 51, 122 ECU in, 41-42, 118 EU. see European Union (EU) history of, 41, 43-51, 118-123 Euro, 104. see also Single currency intervention rules in, 42, 45, 118 benefits of, 331, 338 Italy in, 60---63 exchange policy of, 53, 103 members of, 118 function of, 51-52 principles of, 43 European Central Bank (ECB), 32, 46, safeguards in, 118 52, 105, 108 stability policy, 43, 44-45 accountability of, 101 European Monetary Union, 49. see also exchange policy of, 103-104 European Union (EU) responsibilities of, 51, 102-103 European Single Market, 34, 56 European countries. see also specific European System of Central Banks countries (ESCB), 51, 122 compensation per employee European Union, Treaty on, 64 (1961-1995), 120, 134 European Union (EU), 21. see also economic performance of, 119 Economic and Monetary GDP, 58,133 Union (EMU) interest rates, real long-term crisis management in, 39-54 348 INDEX

Euro in, 51, 336 Extended Fund Facilities (IMF), 217, exchange rates in, 32-34 310,314 history of, 32 ministers, 10 1, 102 politics of, 34-35 F Exchange Rate Mechanism, EMS (ERM), 32, 42---43. see also EMS Fazio, Antonio, 78 band Federal Deposit Insurance Corporation central rate adjustments, 43---44 (FDIC), 175 internal rate adjustments, 45 Federal Reserve Board, 16,31,105, 159, lira in, 64-65, 68-69 192 Exchange rates Final Act, 22 depreciation of, 154-155 Financial crises. see also specific crises financial effective, 83 asymmetric information theory of, implicit forward, 87-90 150-156 for peso (1993-1996), 167 causes of, 1,9,151-156,340 real, 115, 125 defmed,151 stability of, 304, 331 degree/rank of, 9 trade-weighted effective, 83 history of, 9-15 Exchange rate systems, 115-116 nature of, 337 absolutely fixed, 31, 32 prevention, 10, 39 asymmetrical, 51 regional, 337-338 crawling peg type, 251 regional control of, 23-26 developing non-traditional exports Financial Institutions Act (Argentina), with, 125-126 185,186 dynamics of, 116-117 Financial Institutions Development in EEC, 40---43 Programme (Russia), EEC snake in the tunnel, 40, 97 218-219 effect on economic policy, 115-144 Financial markets, 21 in emerging market countries, 177- equilibria, 263-264, 269-270, 276, 178 277 fixed, 12,40---41,53, 183 expectations of, 79, 87-90,229- fixed parity, 116-117, 127, 131 230 flexible, 116, 178 IMF surveillance of, 331 floating, 12,301,302 uncertainty in, 152 future, for Europe, 52 volatility of, 80 in Hungarian stabilization program, Financial systems, liberalization of, 251-252 175-176 for Kuwaiti dinar, 288-289 Financial Times, 16 mixed parity, 117 Finland, 42 pegged to basket, 32, 46---47, 116, Fiscal Stability and Growth Pact, 338 124 Florence (Italy), 10-11 pegged to currency, 124, 177 Foreign direct investment (FDI), 257 symmetrical, 51 Franc (CFA), 128 Executive Board (IMF), 311, 316, 324 France, 95-105 FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 349

CFA involvement, 127, 128 Greenspan, Alan, 16, 155 in EMS, 40, 45, 118 Gross domestic product (Europe), 58, French referendwn, 68 133 monetary policy of, 44 Gulf Cooperation Council (GCC), 124- promoting MU, 34-35 127,132 Franc Fort Policy, 32-33, 119, 122, 129 benefits of membership, 124 Franc (France), 95-99, 116 currencies per US dollar, 140 Franc (Switzerland), EMU effect on, exchange rate policies, 116, 125-126 109-112 Kuwait, support during occupation, Free Democratic Alliance, 250 126,284 Free market approach, crisis recovery, 10 members in, 124 Fugger family, 11 real GDP growth rates, 140 Fund. see International Monetary Fund resource depletion in, 124-125 (IMF) H G Hansenne, Michel, 332 Gabon, 127 Heavily Indebted Poor Countries GCe. see Gulf Cooperation Council (HIPCs),329 (GCC) Hong Kong, 24, 31 G-5 countries, 14 House ofBardi, 10 G-7 countries, 14, 15-19 House of Peruzzi, 10 G-I0 countries, 13, 14,317 Hungary, 337 General Agreement on Tariffs and Trade communistic history of, 241-244 (GATT), 22, 25, 300 future tasks, 259-260 General Agreement on Trade in Services IMF involvement in, 314 (GATS), 22, 25 monetary policy relaxation General Arrangements to Borrow (IMF), (1992-1995),248-250 303,328,332 recession/supply side adjustment, George, Eddie, 100 246-248 Gerashchenko, Viktor, 216 short-term achievements of Germany. see also Bundesbank stabilization, 257-259 conditions for MU, 35-36 stabilization program (1995), 250- in EMS, 118 257 interest rates (1991-1996), 76 transition adjustment needs, 244-245 long-term forward rates (1992-1996), 74 public debt, 277-278 I reunification, effect of, 48, 56 Gold-exchange standard, 12 IMF. see International Monetary Fund Gold-pool agreement (1961), 12 (IMF) Government action method, crisis Import surcharges, 252-254 recovery, 10 Inflation, 14, 17, 168,258 Greece,42,96, 118, 121 Interest rates, 17, 115 350 INDEX

changes in, impact of, 9, 18, 151- strengthening role of, 325-330 152, 159 surveillance function, 301-302, 315, differentials, lta1y/Gennany 316--317,325-327, (1991-1996), 76 330--331 effect on bank balance sheets, 156 International Monetary System, 103- evolution of international, 192-200 105,301 in Italy (1991-1996), 66 International public goods, 11, 304 in Mexico (1993-1996), 160 Interventions reallong-tenn (Europe), 136 EMS rules for, 42, 45, 118 Interim Committee (IMF), 315, 324, 326, by European Central Bank, 52 327,329 Iraqi invasion of Kuwait, 126,281-295, International Bank for Reconstruction 340 and Development bank deposits, 288 (IBRD),300 bank withdrawals, 286--288 International fmancial institution, 217 debt problem, 290--291 International Financial Statistics, 315 dinar confidence in, 288-289 International Labor Office (lLO), 332- lessons learned from occupation, 333 291-295 International Monetary Fund (lMF), monetary stability/domestic prices, 19-21,340 290 Articles of Agreement, 300, 317 occupation period, 283-285 capital conversion by, 317-319 post-liberation period, 285-291 cooperation with WTO and World pre-invasion economic/monetary Bank,22,329,332,333 conditions, 282-283 cost to member nations, 303 Ireland, 118 crisis management by, 304--314 Italian Futures Market (MIF), 71 fmancial function, 301-304, 315, Italy, 55-90. see also Lira crisis (1992) 327-328,331 balance of tradelbalance on current future adaptation' strategy, 330--333 account/market share future role of, 323-333 (1979-1995), 62 historical role of, 299-319 discount rates, 59, 68 Hungary in, 242 EMS departure, 40, 49,98 IMFIWorid Bank meetings (1994), EMS membership, 60--63, 118 19,20 in ERM band, 33,42 involvement, rationale for, 304 Finance Law (1993), 73 lessons for, 314--319 financial crisis (Feb.lMar. 1995), as monetary institution, 302-303 74--78 origins/objectives, 12, 19-20, 300-- Government's Forecasting and 301 Planning Report, 70 poorest country assistance by, 329- interest rates in (1991-1996), 66, 76 330 long-tenn forward rates (1992-1996), quotas for, 331-332 74 resources of, 327-328, 331-332 public debt in, 263-264, 276, 277- in Russia, 217-218 278 social action by, 332-333 treasury borrowing requirement/public FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 351 debt(1986-1995),61 devaluation of, estimated probabilities treasury credit certificateslbonds in of,89 (1992-1996), 66 dollar influence on, within ERM band, treasury issues yield differentials 82-86 (1992-1996), 71 in ERM band, 64---69,85-86 Italy, Bank of. see Bank ofItaly implicit forward exchange rates, 88 nominal effective exchange rate of (1979-1995), 77 J position within EMS band Joint Vienna Institute, 218 (1990-1992), 65 Judicial systems, 176---177 real effective exchange rate (1979-1996), 62 K Loans. see Debt contracts Luxembourg, 40,118,121

Kindelberger, Charles, 9, 11 Kuwait, 124, 125. see also Iraqi invasion M of Kuwait Maastricht Treaty, 46. see also Danish L referendum, Maastricht Treaty convergence criteria in, 33, 79, 102 Labor costs French referendum, effect of, 68, 69 nominal, 135 problems with, 119, 123 real unit, 121, 136 signing of, 123 Laissez-faire method, crisis recovery, 10 Madrid Declaration (IMF), 327 Larosiere, IMF Managing Director, 309 Major, Prime Minister John, 43 Leaders/stabilizers. see Lender-of-the-Iast Mali,127 resort Management initiative method, crisis Legal systems, 176---177 recovery, 10 Lender-of-the-Iast resort Mark (Gennany) Bundesbank as, 33 as anchor currency, 41, 43, 50 CBRas, 225 as Europe's currency, 35-36 in emerging market countries, 173 franc, relationship with, 95-99 functions of, 11 implicit forward exchange rates, 88 IMF as, 19 Meier, Gerald, 281 Less-developed countries (LDC), 308 Mexican peso crisis (1994-1995), 149- Leverage ratio, 170 179,323,324-325,338 Lira crisis (1992),56---74 currency devaluation in, 154-155 crisis symptoms, 69-74 effects of, 74-75, 184 historical factors, 56---60, 63---69 events, sequence of, 157 international context, 56---60 factors causing, 158-172 recovery from, 70-74 IMF involvement in, 20, 305, 312- Lira (Italy), 63 314 circulation of (1991-1993), 72 Mexico. see also Mexican peso crisis 352 INDEX

(1994-1995) Net worth, 153 bank credit to private enterprises New Arrangements to Borrow (lMF), (1988-1995), 158 303,328 banking system, 158-159 New Economic Mechanism (Hungary), debt contracts in, 154 242 foreign currency exposure Niger, 127, l30 (1991-1995),171 North American Free Trade Agreement foreign portfolio investments, 169 (NAFT A), 20, 21 households/enterprises as creditors/debtors (1987-1995), 162 o inflation (1993-1996), 168 interest rates, 160 OAPEC (Organization of Arab international reserves (1993-1996), Petroleum Exporting Countries), 164 l3 non-performing bank loans, 159 OECD Economic Policy Committee, 105 public debt default (1982),308-309 Oil, 124---125, 127 real GDP (1994-1995), 169 Oil crisis (1973), l3-14, 97, 305, 306- stock market index (1993-1996), 163 308 total cetes and tesobonos, 165 Oil facility, 307-308 Monetary Agreement (Czechoslovakia), Oman, 124 233-234,237-238 OPEC (Organization of Petroleum Monetary Committee (Czechoslovakia), Exporting Countries), 306 233-234 Organization of Arab Petroleum Monetary policies, expansionary, 9, 173 Exporting Countries (OAPEC), Monetary unions (MU), 31, 35-36. see l3 also specific unions Organization of Petroleum Exporting Money and banking multiplier, 187 Countries (OPEC), 306 Money funds, 18 Moody's, 68 p Moral hazard, 150, 151, 174, 189,313- 314 Most-favored-nation (MFN) principle, 25 Padoa-Schioppa, Tommaso, 59 Panama, 31 Paramonova, Viktor, 216 N Paris Club creditors, 329, 342 Partnership for Sustainable Global NAFTA, 20, 21 Growth (lMF), 327, 330, Namier, Lewis B., 281 332,333 National Bank of Hungary, 243, 247, Perestroika, 211, 213 249,251 Persian Gulf War. see Iraqi invasion of National Bank of Slovakia, 236 Kuwait Netherlands, 42, 96, 118,277-278 Peruzzi, House of, 10 Net interest margins (NIM), 194 Peso (Argentina) Net national product (NNP), 124 deposit growth (1991-1994), 199 FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 353

and dollar deposits (1991-1995), 194 R inflation/interest rate, 202 term deposits/savings accounts, growth of, 201 Real wage rate, 120-121 Peso (Mexico), 161, 167. see also Regionalism, 23-26 Mexican peso crisis (1994- Reserves, 9 1995) in Argentina, 186-188 Phillip II (Spain), 11 in Mexico (1993-1996), 164 Plaza Accord (1985), 14-15,53 pooling of, 128-129 Poland, 241-242 Retail banks (Argentina), 194,202 Portugal, 42, 96, 118, 121 balance sheet for, 196 Pound (UK), 98 failing/merging, characteristics of, Price levels, 115 203-206 Prices, 9 profits and losses for, 198 consumer (1990-1996),57 Russia, 211-225. see also Banking flexibility of, 116 system (Russia) stability of, in emerging market international financial institutions in countries, 178-179 215,217-219 ' Program of Action (IMP), 332 politicaVeconomic history, 211-213 Promstroibank, 213 Russia Small Business Fund, 219 Public debt crises, 15 equilibria in, 263-264, 267-277 s IMP involvement in (1980's), 305, 308-311 SADC (Southern African Development in Italy, 61, 263-264 Community),21 model. see Public debt crisis model Saudi Arabia, 124, 126, 127, 132 public debt/debt service, 278 Sberbank, 213 Public debt crisis model, 264-267 Schmidt, Chancellor Helmut, 13,32,41, government giving up stabilization 97 plan, 267-269 Schultz, George, 307 multiple equilibria, 269-270 Schumpeter, Joseph, 39 uncertainty, 270-276 Senegal, 127 Public goods, 11,304 Service for Eastern European Countries Public Service Borrowing Requirements and International (P.S.B.R.), 101 Organizations (BIS), 218 Singapore, 24 Q Single currency. see also Euro benefits of, 95, 104-105 drawbacks of, 113 Qatar, 124 exchange rate, 3 1 as stabilizing factor, 100-105 Single Market, 34, 56 Slovak Republic, 232-238 Czech Republic economy compared, 354 INDEX

233 Tequila effect, 187,328,339 foreign exchange reserves, 237 Thatcher, Margaret, 98 government budget, balance of, 235 Togo, 127 Smithsonian Agreements, 13 Transition economies, 341. see also Snake in the tunnel, 40, 97 Czechoslovakia; Hungary; Snake without the tunnel, 97 Russia Socialist Party, 250 IMF involvement in, 305, 311--312, Southern African Development 314--315 Community (SADC), 21 Treaty of Maastricht. see Maastricht Spain, 33,42, 96, 118,277--278 Treaty Special Data Dissemination Standard Treaty on European Union, 64 (lMF), 315, 326 Trust Fund (lMF), 307 Speculation, excessive, 9 Spets banks, 213 Stabilization program (Hungary), 250-- u 257 exchange rate policy modifications, Uncertainty, 152,270--276 251--252 Unemployment, 120, 122, 126, 138 fiscal revenue enhancing measures, Unified Economic Agreement (GCC), 252--254 124 income policy, 256--257 United Arab Emirates, 124, 125 welfare reform, 254--255 United Kingdom, 96 Stand-by program (IMF), 230, 231, 314 in EMS, 40, 42, 49, 98, 118 State Bank of the USSR, 213 joining EU, 36--37, 102, 121 Sterling (UK), 98 United Nations, 300, 333 Stock market crashes, 153 United States. see also Dollar (US) Structural Adjustment Facility (lMF), bank failure in, 155 307 Economic Reports of the President Surveillance, IMF, 315, 316--3 17, (1994,1995),24--25 325--327,330--331 Exchange Stabilization Fund, 313 Sweden, 33,42,277--278 General Accounting Office, 175 Swiss National Bank (SNB), 110, 111 influence of, 12 Switzerland, 96, 107--113 Uruguay Round Multilateral Trade EMU effect on, 109 Negotiations, 22 fixing exchange rate for franc, 110 monetary policies of, 110--112 other policies of, 112 v Systemic Transformation Facility (IMF), 311 Vienna Institute for Economic Comparisons, 233 Vneshekonombank,213 T Volcker, Paul, 104

TARGET,108 Target zone system, 53, 104 FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 355

WAEMU (West African Economic and Monetary Union), 127 Wage indexation, 60, 73 Wage rates, 115, 116 Wages, real, 120-121, 134,256-257 Wage share, 139 War. see Iraqi invasion of Kuwait Welfare reform (Hungary), 254-255 Welser family, 11 Werner, Prime Minister Pierre, 40 Werner report (1970),40,41,97 West African Economic and Monetary Union (WAEMU), 127 Wholesale banks (Argentina), 194,202 balance sheet for, 195 failing of, 206 profits and losses for, 197 Witteveen, IMF Managing Director, 307 World Bank, 12,242 cooperation with WTOIIMF, 22, 329, 332,333 IMF/World Bank meetings (1994), 19,20 World depressions, 10-11 World Trade Organization (WTO), 21- 23,318,333 functioning of, 22-23 purpose of, 21-22 Regional Trading Arrangements committee, 25

Yeltsin, Boris, 211 z

Zaire, 127 Zhilsotsbank, 213, 214