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Anti-Crisis Macroeconomic Policy in the Conditions of COVID-19 in Bulgaria

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  • Tsvetomir Tsvetkov
  • Sonya Georgieva

Abstract

Any anti-crisis macroeconomic policy includes monetary and fiscal policy. The construction of anti-crisis macroeconomic policy in the conditions of a small open economy in a currency board and a virus pandemic raises the question of which measures should be the foundation and which measures should play a complementary macroeconomic role. This issue is extremely important because it predetermines both the efficiency and effectiveness of counter-cyclical policy. This study deals with the structuring of the main and complementary role of the fiscal and monetary policy in the general anti-crisis policy of Bulgaria. The focus is on 2020, looking at the impact of aggregate fiscal multiplier and monetary measures on GDP, based on extrapolation. A mathematical analysis is realized, which leads to quantitative results that illustrate the impact of fiscal and monetary policy on GDP development in a predictable short-term period which covers 2020 on a quarterly basis.

Suggested Citation

  • Tsvetomir Tsvetkov & Sonya Georgieva, 2021. "Anti-Crisis Macroeconomic Policy in the Conditions of COVID-19 in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 107-130.
    • Handle: RePEc:bas:econst:y:2021:i:1:p:107-130
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    References listed on IDEAS

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    Cited by:

    1. Dimitar Zlatinov & Ilia Atanasov, 2021. "Absolute and Conditional Convergence: A Story about Convergence Clubs and Divergence in the EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 39-55.

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    More about this item

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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