Financial Policy Foundations for Growth in South East Europe

Abstract

This chapter reviews the experience of South East European (SEE) countries in, inter alia, deploying macroprudential tools in an effort to control domestic credit expansion. The chapter also reviews the implications of the evolving EU financial architecture for SEE economies, focusing on changes to the regulatory, supervisory, and market structures especially in the euro area. These changes will clearly affect SEE economies to varying degrees depending, inter alia, upon whether they are euro members, non-euro EU members, EU accession candidates, or otherwise on the fringe of the EU. Macroprudential tools could nevertheless provide (to varying degrees) the means to better attune monetary conditions to national requirements and to help assure financial stability.