Emerging financial systems in Central and Eastern European countries 
Costas Siriopoulos, University of Macedonia
Dimitris Asteriou, City University Northampton
JEL classification : O160, P270, P340
The aim of this paper is to examine the main challenges in promoting an effective financial system and an effective market economy in the new emerging economies of Central and Eastern Europe. While the paper ranges widely across the spectrum of economic institutions (such as capital markets) and policies, the central theme is the importance of macroeconomic stability for economic growth in the medium and the long run. Examining the recent macroeconomic performance of these countries, the key policies undertaken for the development of their financial systems and the theoretical literature concerning the formation of a market economy, we conclude that the provision of macroeconomic stability is among the essential responsibilities of the state, for economies transforming themselves from centrall planning system into market economies.