Cover -- Contents -- Foreword -- Acknowledgments -- Introduction and Overview -- PART I: PRELUDE TO THE CRISIS -- 1 The Boom Years, 1995-2007 -- PART II: THE CRISIS: REGIONAL PERSPECTIVES -- 2 Gathering Clouds: August 2007-September 2008 -- 3 The Collapse of Lehman and Its Aftermath -- 4 From Stabilization to Recovery -- 5 How Meltdown Was Avoided -- PART III: COUNTRY EXPERIENCE IN COUNTRIES WITH IMF ARRANGEMENTS -- 6 Hungary: Placing the First Call to the IMF from Emerging Europe -- 7 Ukraine: Weathering the Perfect Storm-Challenges and Opportunities -- 8 Latvia: The Domino That Did Not Fall -- 9 Belarus: A Tale of Missed Opportunities -- 10 Serbia: Facing Challenges beyond Crisis Management -- 11 Romania: Reanchoring Growth in More Solid Ground -- 12 Poland: A Beacon of Resilience in Europe -- 13 Bosnia and Herzegovina: Containing the Fallout with International Assistance -- 14 Moldova: Rebounding on Improved Policies -- 15 Kosovo: Watching the Global Crisis from the Sidelines -- PART IV: COUNTRY EXPERIENCE IN OTHER COUNTRIES -- 16 Russia: Rising and Falling with the Price of Oil -- 17 Turkey: Managing a Forceful Rebound -- 18 Estonia: Making a Run for the Euro -- 19 Lithuania: Earning Market Confidence -- 20 Bulgaria: Surviving the Crisis on Its Own -- 21 Croatia: Averting Financial Crisis but Struggling to Become Competitive -- 22 Albania: Building Resilience Just in Time -- 23 Former Yugoslav Republic of Macedonia: Weathering the Storm Rather Well -- 24 Montenegro: Riding the Capital Flow Roller Coaster -- PART V: TOWARD RENEWED AND SUSTAINABLE GROWTH: A POLICY AGENDA -- 25 Lessons and Renewed Challenges -- References -- Contributors -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- K -- L -- M -- N -- O -- P -- R -- S -- T -- U -- V -- W -- Figures.

Figure 1.1 Emerging Europe and Selected Regions: Real Per Capita GDP Growth, 1995-2007 -- Figure 1.2 Emerging Europe: Domestic Demand Growth and GDP Growth, 2003-08 -- Figure 1.3 Emerging Europe: Domestic Demand and Private Sector Credit Growth, 2003-08 -- Figure 1.4 Emerging Europe: Change in Real Estate Prices, 2003-08 -- Figure 1.5 Credit Growth -- Figure 1.6 Credit to GDP Ratio, 2008 -- Figure 1.7 Emerging Europe: Net Capital Flows, 2000-07 -- Figure 1.8 Emerging Europe: Reform and Capital Flows -- Figure 1.9 Emerging Europe: Cumulative Net Capital Inflows, 2003-08 -- Figure 1.10 The Surge in Capital Inflows by Type of Capital, 2003-07 -- Figure 1.11 Capital Inflows and Private Sector Credit -- Figure 1.12 Credit, Domestic Demand and GDP -- Figure 1.13 Emerging Europe: Consumer Price Inflation, 2006 and 2008 -- Figure 1.14 External Debt and International Investment Position, 2003-08 -- Figure 1.15 Emerging Europe: Foreign Direct Investment Flow in Tradable and Nontradable Sectors, 2007 -- Figure 1.16 Emerging Europe: Total Private Sector Credit by Currency, 2008 -- Figure 1.17 Emerging Europe: Private Sector Credit, 2003 and 2008 -- Figure 1.18 Fiscal Policy -- Figure 1.19 Emerging Europe: Credit Default Swap Spreads -- Figure 1.20 External Position of Western Banks vis-à-vis Selected Regions -- Figure 2.1 Emerging Europe: Credit Default Swap Spreads -- Figure 2.2 Emerging Europe: Stock Market Indices -- Figure 2.3 Emerging Europe: Consumer Price Inflation, 2006 and 2008 -- Figure 2.4 Baltics: House Price Index, Credit, GDP, and Domestic Demand 2007:Q1-2008:Q3 -- Figure 3.1 Emerging Europe: September 2008 Real GDP Growth Projections, 2004-09 -- Figure 3.2 Emerging Europe: Credit Default Swap Spreads -- Figure 3.3 Emerging Europe: Emerging Market Bond Index Spreads -- Figure 3.4 Emerging Europe: Stock Market Indices.

Figure 3.5 Emerging Europe: Net Capital Flows to Emerging Europe, 2003-09 -- Figure 3.6 Emerging Europe: Reduction of Net Capital Flows during the Crisis of 2008/09 -- Figure 3.7 Emerging Europe: Nominal Effective Exchange Rates -- Figure 3.8 Emerging Europe: Real Exports, 2008:Q3-2010:Q4 -- Figure 3.9 Emerging Europe: Real Credit Stock, September 2008-March 2010 -- Figure 3.10 Baltic Countries: Real Estate Prices, 2008:Q3-2009:Q4 -- Figure 3.11 Selected Emerging Europe Countries: Real Estate Prices, -- Figure 3.12 Emerging Europe: Real GDP, 2008:Q3-2010:Q4 -- Figure 3.13 Emerging Europe: Change in Credit-to-GDP Ratio and Real GDP Growth -- Figure 3.14 Emerging Europe: Real Domestic Demand Growth and Real GDP Growth, 2009 -- Figure 3.15 Emerging Europe: Real Domestic Demand Growth and Real GDP Growth -- Figure 4.1 Global Market Developments, 2006-11 -- Figure 4.2 Euro Area: Real GDP and Components, 2007-11 -- Figure 4.3 Emerging Europe: Real Exports 2007-11 -- Figure 4.4 Emerging Europe: Real GDP, 2007-11 -- Figure 4.6 Emerging Europe: Domestic Demand and Precrisis Imbalances, 2005-10 -- Figure 4.7 Emerging Europe: Real Estate Prices and Debt, 2005-10 -- Figure 4.8 Emerging Europe: Discretionary Fiscal Measures, 2009-12 -- Figure 4.9 Emerging Europe: Fiscal Deficits, 2009 and 2011 -- Figure 4.10 Emerging Europe: Unemployment Rate, 2008 and 2010 -- Figure 4.11 CESEE and Selected Comparators: Financial Soundness Indicators, 2011 or Latest Available -- Figure 5.1 Selected Countries: Precrisis Vulnerabilities -- Figure 5.2 Selected Countries: Financing Packages under IMF-Supported Programs -- Figure 5.3 United States, Euro Area, and Japan: Policy Interest Rates, 1995-2010 -- Figure 5.4 Euro Area, United States, and Japan: Real Imports of Goods and Services, 1995-2010 -- Figure 5.5 Precrisis and Postcrisis Change of Exposure of BIS-Reporting Banks.

Figure 6.1 New EU Member States: Portfolio Investments by Nonresidents -- Figure 6.2 Hungary: Composition of Fiscal Adjustment Plans under the IMF-Supported Program -- Figure 6.3 CDS Spreads: Hungary Compared with Other New EU Member States, June 2008-October 2009 -- Figure 7.2 Ukraine: Banking Sector Indicators, 2005-11 -- Figure 7.3 Ukraine: Imported and Domestic Gas Prices, 2005-11 -- Figure 9.1 Belarus: Implicit Gain from Below-Market Prices for Crude Oil and Natural Gas -- Figure 9.2 Belarus: IMF-Supported Program and Beyond -- Figure 10.1 Serbia and New EU Member States: Per Capita Income during Transition -- Figure 13.1 Bosnia and Herzegovina: Central Bank's Foreign Assets -- Figure 15.1 Kosovo: Bank Deposits and Loans, 2007-11 -- Figure 15.2 Kosovo: General Government Bank Balances and Budget Balance -- Figure 16.1 Russia: Federal Government Finances -- Figure 16.2 Russia: Crisis Liquidity Injections -- Figure 16.3 Russia: Euro-Dollar Basket Value of the Ruble -- Figure 16.4 Russia: Monthly Change in Reserves -- Figure 19.1 Lithuania and Selected Countries: Hourly Labor Costs -- Figure 20.1 Bulgaria: Foreign Direct Investment by Sector, 1998-2010 -- Figure 20.2 Selected Countries: Contribution to Average Real Gross Value Added Growth, 2003-08 -- Figure 21.1 Selected European Countries: Average Gross Monthly Wages versus Per Capita GDP, 2008 -- Figure 22.1 Albania: Deposits and Exchange Rate Movements, August 2008-December 2010 -- Figure 24.1 Montenegro: Development of Bank Deposits and Other Balance Sheet Items -- Figure 25.1 Emerging Europe: Average Real GDP Growth -- Figure 25.2 Emerging Europe: Private Sector Credit, 2003 and 2008 -- Figure 25.3 Emerging Europe: Net Private Capital Inflows, 2007 and 2011 -- Figure 25.4 Emerging Europe: Current Account Deficits.

Figure 25.5 Emerging Europe: Real Private Credit, January 2009 to December 2011 -- Figure 25.6 Selected CESEE Countries: Change in Real Imports, 2009 -- Figure 25.7 Emerging Europe: Exports, January 2008 to December 2011 -- Figure 25.8 Emerging Europe: External Financing Needs -- Figure 25.9 Emerging Europe: Stock of Foreign Currency Loans, December 2011 -- Figure 25.10 Emerging Europe: Selected Financial Indicators, January 2011 to March 2012 -- Figure 25.11 Emerging Europe: Fiscal Vulnerability Indicators in Perspective -- Figure 25.12 Emerging Europe: NPL Levels and Past Credit Growth -- Tables -- TABLE 1.1 Emerging Europe: Exports of Goods, 1995-2007 -- TABLE 1.2 Emerging Europe: Direction of Exports, 2007 -- TABLE 1.3 Net Private Capital Flows, 2003-09 -- TABLE 1.4 Emerging Europe: General Government Overall Balance -- TABLE 1.5 Emerging Europe: Public Debt, 2003-07 -- TABLE 1.6 Real GDP Growth Consensus Forecast -- TABLE 2.1 Emerging Europe: World Economic Outlook Real GDP Growth Rate Projections -- TABLE 2.2 Emerging Europe: External Positions of Western Banks vis-à-vis Emerging Europe -- TABLE 3.1 WEO Real GDP Growth Projections for Emerging Europe, 2007-10 -- TABLE 3.2 Emerging Europe: Gross International Sovereign Bond Issuance, 2008:Q1-2010:Q1 -- TABLE 3.3 Emerging Europe: External Positions of Western Banks vis-à-vis Emerging Europe, 2007-09 -- TABLE 3.4 Emerging Europe: Volume of International Syndicated Loans Issuance to Banks in 2008 -- TABLE 3.5 Emerging Europe: Private Sector Domestic Currency Deposits, October 2008-March 2009 -- TABLE 3.6 Emerging Europe: Exchange Rate Pressure Index, September 2008-March 2009 -- TABLE 3.7 Emerging Europe: Banking System Liquidity Policy Measures, 2008:Q4-2009:Q2 -- TABLE 3.8 Emerging Europe: Policy Measures to Protect Bank Solvency, 2008:Q4-2009:Q2.

TABLE 3.10 Emerging Europe: Monetary Policy Rate Changes, 2008:Q4-2009:Q2.