• Login
    View Item 
    •   Oxy Scholar Home
    • Economics
    • Economics URC Student Scholarship
    • View Item
    •   Oxy Scholar Home
    • Economics
    • Economics URC Student Scholarship
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    The Currency Board in Bulgaria: Is It the Best Solution?

    Thumbnail
    Author
    Paunova, Rayna
    Issue
    urc_student; urc_student
    Date
    2004-01-01 0:00
    Metadata
    Show full item record
    URI
    https://scholar.oxy.edu/handle/20.500.12711/841
    Abstract
    Currency boards have always been a subject of debate. While they may significantly improve the quality of the national currency, they block discretionary monetary power and may cause severe economic problems. Currency Board was introduced in Bulgaria in July 1997. A combination of hyperinflationary and banking crisis forced the country to sacrifice monetary independence for the sake of attracting investment and promoting confidence. This research project analyses the dilemmas Bulgaria faced before adopting the CBA and the consequences of the new currency regime. It estimates whether the currency board was the best option for Bulgaria in 1997 and if it still is the appropriate policy for the country. After examining the advantages and disadvantages of fixed exchange rate regimes and currency board arrangements, I look at the specifics of the Bulgarian situation and the appropriateness of fixing the exchange rate. This allows me to make an economic assessment of the outcome of the CBA. Finally, I suggest reforms based on the experiences of the Baltic countries and present alternative policy options as well as recommendations for future improvements. I conclude that the Currency Board was the best alternative for Bulgaria in 1997 because it helped elevate the crisis, reduced inflation, increased credibility, and stabilized the economy. In spite of all the negative consequences, the Currency Board still is the best option for the country as it maintains stability and ensures the otherwise fragile business and consumer confidence.
    Collections
    • Economics URC Student Scholarship

    Browse

    All of Oxy ScholarCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsJournal TitleJournal IssueThis CollectionBy Issue DateAuthorsTitlesSubjectsJournal TitleJournal Issue

    My Account

    LoginRegister

    DSpace software copyright © 2002-2021  DuraSpace
    Contact Us | Send Feedback
    DSpace Express is a service operated by 
    Atmire NV