Restrictive effects of external capital on development
Experimental visualization of narrower problems
Incidence:
The former centrally planned economies of Central and Eastern European have found foreign capital inflows in their various forms to be a mixed blessing, threatening the macroeconomic balance that they have recent achieved. These countries have learned that it is not easy to continue to attract foreign capital and simultaneously to reduce its adverse effects on inflation, the exchange rate and the current account, and to contain disturbances resulting from reversals of the flows.