Discussing the effects of financial openness in the CEECs

Abstract

This paper is aimed at analyzing the macroeconomic benefits and drawbacks of financial globalization in the CEE area. First, the literature on financial openness and its impact on consumption, economic growth, and poverty are examined, to see whether the empirical findings are consistent or rather divergent. Then, the paper analyzes the necessity and consequences of financial integration in the CEE area, with a focus on the challenges imposed by the global financial crisis.