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Money demand during hyperinflation and stabilization: Bulgaria, 1991-2000

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  • Stefka Slavova
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    Abstract

    The demand for money in Bulgaria is estimated over a ten-year period (1991-2000) of high inflation and inflation uncertainty. The paper distinguishes between three well-defined sub-periods: high, variable, but not systematically accelerating inflation from 1991 until April 1996; the near-hyperinflation period from May 1996 to February 1997; and the subsequent stabilization after the adoption of a currency board. The empirical analysis utilizes a standard methodology of cointegration and error correction. The functional determinants of the demand for money change during the different sub-periods. During the hyperinflation episode, Cagan's model is employed.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 35 (2003)
    Issue (Month): 11 ()
    Pages: 1303-1316

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    Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1303-1316

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    References

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    22. Carlson, John A. & Valev, Neven T., 2001. "Credibility of a new monetary regime: The currency board in Bulgaria," Journal of Monetary Economics, Elsevier, vol. 47(3), pages 581-594, June.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Zimbabwe: how to beat hyperinflation
      by Economic Logician in Economic Logic on 2008-07-28 14:13:00
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    Cited by:
    1. Sahin, Afsin, 2013. "Estimating Money Demand Function by a Smooth Transition Regression Model: An Evidence for Turkey," MPRA Paper 46851, University Library of Munich, Germany.

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