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A stages approach to banking development in transition economies

Ruziev, Kobil; Ghosh, Dipak; Dow, Sheila C.


Kobil Ruziev
AHOD in UG Accounting & Economics Prog Clus

Dipak Ghosh

Sheila C. Dow


Credit shortages are widely thought to explain the output contraction in former Soviet Union (FSU) countries during the 1990s. It is argued here that these shortages were the result of an ahistorical approach to policymaking which ignored the time needed for the establishment and further development of money, banking, and nonbanking financial institutions. Starting from Chick's stages-of-banking-development framework, we examine the experience of the FSU economies in transition from central planning. We then develop a fivephase framework to characterize the process of banking development required for them to reach stage two of Chick's framework, where bank liabilities are accepted as money. © 2008 M.E. Sharpe, Inc.

Journal Article Type Article
Publication Date Sep 1, 2008
Journal Journal of Post Keynesian Economics
Print ISSN 0160-3477
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 31
Issue 1
Pages 3-33
APA6 Citation Ruziev, K., Ghosh, D., & Dow, S. C. (2008). A stages approach to banking development in transition economies. Journal of Post Keynesian Economics, 31(1), 3-33.
Keywords banking development, FSU countries, money, trust
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