Coping with Macroeconomic Imbalances: Bulgaria’s Experience during the Global Turmoil
It is textbook knowledge that economic crises are in most cases associated with the accumulation of macroeconomic imbalances. In turn, macroeconomic imbalances emerge as the result of imbalanced growth. In the ideal world of equilibrium, all macroeconomic variables change at the same, equilibrium growth rate. The real world is one of disharmony and disequilibria, when there are significant divergences in the rates of growth of economic variables. When speed differentials are within certain limits, the resulting macroeconomic imbalances are manageable through the instruments of macroeconomic policy and are not a matter of concern. Crises emerge when disequilibria get out of control and the economy is incapable of coping with significant speed differentials among key economic variables. ...
|Length:||29 pages including 1 Table and 17 Figures|
|Date of creation:||Sep 2012|
|Date of revision:|
|Publication status:||Published as wiiw Policy Note|
|Contact details of provider:|| Postal: Rahlgasse 3, A-1060 Vienna|
Phone: (+43-1) 533 66 10
Fax: (+43-1) 533 66 10-50
Web page: http://www.wiiw.ac.at
More information through EDIRC
|Order Information:||Web: http://wiiw.ac.at|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dobrinsky, Rumen, 2006. "Catch-up inflation and nominal convergence: The balancing act for new EU entrants," Economic Systems, Elsevier, vol. 30(4), pages 424-442, December.
- Serkan Çiçek & Vladimir Gligorov & Michael Landesmann & Roman Römisch & Hermine Vidovic, 2014. "Monthly Report No. 9/2014," wiiw Monthly Reports 2014-09, The Vienna Institute for International Economic Studies, wiiw.
- Vladimir Gligorov & Mario Holzner & Olga Pindyuk & Josef Pöschl, 2008. "Monthly Report No. 12/2008," wiiw Monthly Reports 2008-12, The Vienna Institute for International Economic Studies, wiiw.
- Dobrinsky, Rumen, 2000. "The Transition Crisis in Bulgaria," Cambridge Journal of Economics, Oxford University Press, vol. 24(5), pages 581-602, September.
- Dornbusch, Rudiger & Park, Yung Chul & Claessens, Stijn, 2000. "Contagion: Understanding How It Spreads," World Bank Research Observer, World Bank Group, vol. 15(2), pages 177-97, August.
- Gros, Daniel, 2012. "Macroeconomic Imbalances in the Euro Area: Symptom or cause of the crisis?," CEPS Papers 6865, Centre for European Policy Studies.
- Vladimir Gligorov & Mario Holzner & Michael Landesmann, 2006. "Monthly Report No. 12/2006," wiiw Monthly Reports 2006-12, The Vienna Institute for International Economic Studies, wiiw.
When requesting a correction, please mention this item's handle: RePEc:wii:pnotes:pn:8. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service)
If references are entirely missing, you can add them using this form.