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Some New Insights into Currency Boards: Evidence from Bulgaria


  • Alexandru Minea


  • Christophe Rault



The presence of a Currency Board (CB) monetary system in Bulgaria is a key factor in assessing monetary policy transmission, since a CB implies no monetary autonomy. Using the SVAR technique according to the statistical properties of macroeconomic time series, we propose evidence sustaining the endogeneity of main Bulgarian monetary aggregates to shocks on the ECB interest rate. These results shed a new perspective over CB functioning.

Suggested Citation

  • Alexandru Minea & Christophe Rault, 2008. "Some New Insights into Currency Boards: Evidence from Bulgaria," William Davidson Institute Working Papers Series wp903, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2008-903

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    References listed on IDEAS

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    Cited by:

    1. Gedeon Shirley, 2010. "The Political Economy of Currency Boards: Case of Bosnia and Herzegovina," South East European Journal of Economics and Business, De Gruyter Open, vol. 5(2), pages 7-20, November.

    More about this item


    Currency Board; monetary policy; SVAR; Bulgaria.;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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