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From Prosperity to Depression: Bulgaria and Romania (1996/97 ??? 2010)

Author

Listed:
  • Nikolay NENOVSKY
  • Kiril TOCHKOV
  • Camelia TURCU

Abstract

Bulgaria and Romania are neighbouring countries, which have always been rivals. Following the decision on EU enlargement to include Bulgaria and Romania (late 1999) and with membership negotiations already started (2004), the race between the two countries gained momentum and comparisons of performances in the areas of economy and democracy became a regular practice. Around late 1990s the two countries took different trajectories, although in the direction of EU and market economy. The great divergence is lying primarily in the choice of monetary regime. While Romania continued to pursue and enhance its discretionary monetary policy and since 2005 has moved to inflation targeting, Bulgaria made an abrupt turn in mid-1997 and introduced a currency board arrangement.

Suggested Citation

  • Nikolay NENOVSKY & Kiril TOCHKOV & Camelia TURCU, 2011. "From Prosperity to Depression: Bulgaria and Romania (1996/97 ??? 2010)," William Davidson Institute Working Papers Series wp1018, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2011-1018
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    References listed on IDEAS

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    More about this item

    Keywords

    post communist transformation; monetary regimes; global crisis; Bulgaria and Romania;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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