Introduction: financial reforms and economic transitions: an overview of the major issues Mario I. Blejer and Marko Skreb; Part I. General Studies: 1. Monetary policy during transition: an overview Martha de Melo and Cedvet Denizer; 2. Towards market-oriented banking in the economies of transition John Bonnin and Paul Wachtel; 3. The political economy of banking sector reform in transition Arye L. Hillman and Heinrich W. Ursprung; 4. Macroeconomic influences on transition and financial reforms Willem H. Buiter, Ricardo Lago and Hélene Rey; Part II. Country Studies: 5. Banking crisis in the Baltic state: causes, solutions and lessons; 6. Monetary and exchange rate policy, capital inflows and the structure of the banking system in Croatia Velimir Sonje, Evan Kraft and Thomas Dorsey; 7. Monetary and financial market reform in transition economies: the special case of China Robert A. Mundell; 8. The financial sector and high interest rates: lessons from Slovenia Velimir Bole; 9. Bank rehabilitation in Slovenia: with emphasis on Nova Ljubljanska Banka Franjo Stiblar; 10. Liberalization and financial reforms: lessons from the Israeli experience Jacob A. Frenkel; Part III. Afterword: 11. The financial sector in transition: an afterword Mario I. Blejer.