IDEAS home Printed from https://ideas.repec.org/p/ris/jhisae/0140.html

On Extending The Currency Board Principle In Bulgaria: Long Live The Currency Board

Author

Listed:
  • Steve H. Hanke

    (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)

  • Todor Tanev

    (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)

Abstract

The year 1997 was both the worst and best of years for Bulgaria. The year started badly. In February, Bulgaria’s hyperinflation peaked at the fantastic rate of 242% per month (Hanke and Krus, 2013). Then, things dramatically changed for the better. On July 1st, a currency board law was adopted, and the Bulgarian National Bank (BNB), specifically its Issue Department, began to operate under currency board rules. These rules required the lev to be fully backed by Deutschemark reserves (now euro reserves) and to freely trade at a fixed exchange rate with the Deutschmark (Hanke, 2016). With that, the lev became a clone of the Deutschmark, and good news followed.

Suggested Citation

  • Steve H. Hanke & Todor Tanev, 2019. "On Extending The Currency Board Principle In Bulgaria: Long Live The Currency Board," Studies in Applied Economics 140, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    • Handle: RePEc:ris:jhisae:0140
    as

    Download full text from publisher

    File URL: https://sites.krieger.jhu.edu/iae/files/2019/11/On-Extending-the-Currency-Board-Principle-in-Bulgaria-Long-Live-the-Currency-Board.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:cto:journl:v:20:y:2000:i:1:p:49-59 is not listed on IDEAS
    2. Steve Hanke, 2016. "Remembrances of a Currency Reformer: Some Notes and Sketches from the Field," Studies in Applied Economics 55, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    3. Steve Hanke, 2002. "On dollarization and currency boards: Error and deception," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(4), pages 203-222.
    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. Eashan Gupta & Matthew Auran & Dylan Frankenfield, 2019. "Jamaica'S Currency Board, 1920-1961, And A Comparison With Its Central Bank," Studies in Applied Economics 136, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    2. 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.
    3. Tas, Bedri Kamil Onur & Togay, Selahattin, 2010. "Optimal monetary policy regime for oil producing developing economies: Implications for post-war Iraq," Economic Modelling, Elsevier, vol. 27(5), pages 1324-1336, September.
    4. Moustapha AMAN & Ismeal MAHAMOUD & Nikolay NENOVSKY, 2013. "Le système informel de transferts de fonds et le mécanisme automatique du Currency Board : complémentarité ou antagonisme ? Le cas des transferts des hawalas à Djibouti," LEO Working Papers / DR LEO 2249, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    5. Makochekanwa, Albert, 2009. "Zimbabwe’s Currency Crisis: Which Currency To Adopt In The Aftermath Of The Multi-Currency Regime?," MPRA Paper 22463, University Library of Munich, Germany.
    6. Tal Boger, 2018. "On Israel's "Hyperinflation"," Studies in Applied Economics 127, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    7. Popov, Vladimir, 2010. "To devalue or not to devalue? How East European countries responded to the outflow of capital in 1997-99 and in 2008-09," MPRA Paper 28112, University Library of Munich, Germany.
    8. Alain Raybaut & Dominique Torre, 2004. "Unions monétaires, caisses d'émission et dollarisation : les fondements analytiques des systèmes de change « ultra-fixes »," Revue d'Économie Financière, Programme National Persée, vol. 75(2), pages 37-54.
    9. Carletti, Elena & Claessens, Stijn & Fatás, Antonio & Vives, Xavier (ed.), 2020. "Barcelona Report 2 - The Bank Business Model in the Post-Covid-19 World," Vox eBooks, Centre for Economic Policy Research, number p329, December.
    10. 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.
    11. María Belén Wu, 2016. "Issues in Venezuelan Monetary and Economic Reform," Studies in Applied Economics 62, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    12. Ryan Freedman, 2017. "Did the Philippine Islands Have a Currency Board during the American Colonization Period?," Studies in Applied Economics 92, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    13. Marissa Licursi, 2016. "Before Entering the East African Currency Board: The Case of Zanzibar (1908 – 1935)," Studies in Applied Economics 44, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    14. Steve Hanke, 2003. "Money and the rule of law in ecuador," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 131-145.
    15. Nikolay Nenovsky, 2010. "Monetary Regimes In Post-Communist Countries Some Long-Term Reflections," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 217-234, november.
    16. Bennett T. McCallum, 2014. "Monetary Policy in a Very Open Economy: Some Major Analytical Issues," Pacific Economic Review, Wiley Blackwell, vol. 19(1), pages 27-60, February.
    17. Dorota Zuchowska, 2015. "Accession to the Eurozone as Lithuania’s exit strategy from the currency board system," Working Papers 10/2015, Institute of Economic Research, revised Feb 2015.
    18. Mike Nyamazana Sikwila, 2013. "Dollarization and the Zimbabwe’s Economy," Journal of Economics and Behavioral Studies, AMH International, vol. 5(6), pages 398-405.
    19. Jérôme Blanc, 2014. ""Argentina o dolarización", ou quand la monnaie revient à la souveraineté," Post-Print halshs-01016336, HAL.
    20. Cachanosky, Nicolás & Ferrelli Mazza, Federico Julián, 2021. "Why did inflation targeting fail in Argentina?," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 102-116.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:jhisae:0140. 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: Steve H. Hanke (email available below). General contact details of provider: https://edirc.repec.org/data/iaejhus.html .

    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.