IDEAS home Printed from https://ideas.repec.org/a/isp/journl/v9y2015i1p554-562.html
   My bibliography  Save this article

The Currency Board In Bulgaria – Staus Quo And Perspectives

Author

Listed:
  • Emil Kalchev

Abstract

The currency board was introduced in Bulgaria in 1997 in order to limit the galloping inflation and to stabilise the economy. It operates successfully as it "survived" the global financial crisis in 2008 and the bank runs in Bulgaria in 2014. Worst case simulations showed unambiguously resistance of the currency board to internal and external shocks in the mid-term outlook. Reflecting the panic and the bank runs in the summer 2014, indicators for the board’s status reported deterioration. However, they stabilised immediately thereafter, not giving any cause for concern about the stability of the board at the end of the year.

Suggested Citation

  • Emil Kalchev, 2015. "The Currency Board In Bulgaria – Staus Quo And Perspectives," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 9(1), pages 554-562.
    • Handle: RePEc:isp:journl:v:9:y:2015:i:1:p:554-562
    as

    Download full text from publisher

    File URL: https://www.scientific-publications.net/get/1000012/1440160229493510.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. D. Ialnazov & Nikolay Nenovsky, 2001. "The Currency Board and Bulgaria's Accession to the European Monetary Union," Post-Print halshs-00259883, HAL.
    2. Luis A. Rivera-Batiz & Amadou N. R. Sy, 2013. "Currency Boards, Credibility, and Macroeconomic Behavior," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 831-870, November.
    3. Miron MUSHKAT, 2002. "The Hong Kong Currency Board'S Defense Against Financial Market Pressure: A Behavioral Perspective," The Developing Economies, Institute of Developing Economies, vol. 40(2), pages 152-165, June.
    4. Steve Hanke, 2012. "Bulgaria: Fifteen Years Later," Studies in Applied Economics 2, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    5. Holger C. Wolf & Atish R. Ghosh & Helge Berger & Anne-Marie Gulde, 2008. "Currency Boards in Retrospect and Prospect," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232650, December.
    6. Ho, Chun-Yu & Ho, Wai-Yip Alex, 2009. "On the sustainability of currency boards: Evidence from Argentina and Hong Kong," IMFS Working Paper Series 20, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Shu & Fu, Liang & Ho, Chun-Yu & Alex Ho, Wai-Yip, 2023. "Political stability and credibility of currency board," Journal of International Money and Finance, Elsevier, vol. 137(C).
    2. Roman Inderst & Manuel Klein, 2007. "Innovation, endogenous overinvestment, and incentive pay," RAND Journal of Economics, RAND Corporation, vol. 38(4), pages 881-904, December.
    3. Dorota Zuchowska, 2015. "Accession To The Eurozone As Lithuania’S Exit Strategy From The Currency Board System," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(3), pages 27-43, September.
    4. Inderst, Roman & Mueller, Holger M., 2008. "Bank capital structure and credit decisions," Journal of Financial Intermediation, Elsevier, vol. 17(3), pages 295-314, July.
    5. Daianu, Daniel & Vranceanu, Radu, 2003. "Subduing High Inflation In Romania. How To Better Monetary And Exchange Rate Mechanisms?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 5-36, September.
    6. Fuchun Jin, 2002. "A Model to Analyze the Macroeconomic Interdependence of Hong Kong with China and the United States," Working Papers 062002, Hong Kong Institute for Monetary Research.
    7. Roman Inderst & Holger M. Mueller & Felix Münnich, 2006. "Financing a Portfolio of Projects," The Review of Financial Studies, Society for Financial Studies, vol. 20(4), pages 1289-1325.
    8. Nenovsky, Nikolay & MIlev, Jeko, 2014. "Bulgarian Welfare System (1989 – 2014) During the Transition and the Crisis," MPRA Paper 62039, University Library of Munich, Germany, revised 2014.
    9. Rachmiel Joseph Naness, 2017. "An Analysis of the Performance of Currency Boards," Studies in Applied Economics 70, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    10. repec:kap:iaecre:v:11:y:2005:i:4:p:347-357 is not listed on IDEAS
    11. Berger, Helge & Nitsch, Volker, 2014. "Wearing corset, losing shape: The euro's effect on trade imbalances," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 136-155.
    12. K. Dimitrova & Nikolay Nenovsky, 2002. "Dual Inflation under the Currency Board. The challenges of Bulgarian EU accession," Post-Print halshs-00259861, HAL.
    13. Schrader, Klaus & Laaser, Claus-Friedrich & Reiljan, Janno, 2014. "Deficiencies in the development of an Estonian welfare state," Kiel Working Papers 1944, Kiel Institute for the World Economy (IfW Kiel).
    14. George Viksnins, 2000. "Baltic monetary regimes in the XXI st century," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 35(5), pages 213-218, September.
    15. repec:cbk:journl:v:2:y:2013:i:2:p:5-27 is not listed on IDEAS
    16. Ismeal Mahamoud & Houmed Mohamed & Jean-François Ponsot, 2014. "Gouvernance, éthique du policy maker et dynamiques macroéconomiques en régime de Currency Board : le cas de Djibouti," Post-Print halshs-01284797, HAL.
    17. Nicholas Krus, 2012. "The Money Supply in Currency Boards," Studies in Applied Economics 3, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    18. Roman Inderst & Holger M. Mueller, 2010. "CEO Replacement Under Private Information," The Review of Financial Studies, Society for Financial Studies, vol. 23(8), pages 2935-2969, August.
    19. Holger Wolf, 2016. "Currency boards as a path towards the Eurozone: lessons from the Baltics," International Economics and Economic Policy, Springer, vol. 13(1), pages 45-57, January.
    20. Ying Wu, 2005. "Determining a Modified Currency Board's Two-Period Exchange Rate Strategy," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(4), pages 347-357, November.
    21. Aman, Moustapha & Nenovsky, Nikolay, 2015. "Stabilité du Currency Board et fuite des capitaux. Modèle théorique et application empirique au cas de Djibouti [Currency Board stability and capital flight. Theoretical model and empirical applica," MPRA Paper 93540, University Library of Munich, Germany, revised 2018.
    22. Laaser, Claus-Friedrich & Reiljan, Janno & Schrader, Klaus, 2015. "Some empirical findings on the structural development of the Estonian economy," Kiel Working Papers 1998, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • A - General Economics and Teaching

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isp:journl:v:9:y:2015:i:1:p:554-562. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Svetoslav Ivanov (email available below). General contact details of provider: https://www.scientific-publications.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.