The Impact of the Russian crises on selected Central and Eastern European countries

Abstract

The paper examines the impact of the Russian crisis on five Central and Eastern European countries (the Czech Republic, Hungary, Poland, Slovakia, and Slovenia) in 1998 and 1999.The analysis starts by discussing trade effects and their impact on GDP developments.Subsequently, the focus turns to the financial channel.After a review of immediate and temporary financial contagion effects, the medium-term impact on real interest rates and its implications for investment, consumption and output are scrutinized.Finally, the paper appraises the policy measures that were taken and the policy discussions that unfolded against the backdrop of the Russian crisis.