PROS AND CONS OF THE CURRENCY BOARD-CASE OF BULGARIAZornitsa Daskalova Krasimirova
, 2010, final seminar paper
Abstract: The investigated topic is such that retains its importance throughout time as it tends to be a good lesson on the misconduct of monetary policy of one country during turbulent and drastic economic and political changes, and the following actions meant to bridle back the economy to its stable performance. The focus of this thesis is of Bulgaria and the way it coped with the galloping hyperinflation in the late nineties of the previous century.
My main motivation and reason behind writing this thesis is first the fact that I am Bulgarian, who has the language know-how and the access to vaster sources describing and delving into the investigated topic. Furthermore, I am familiar with the culture that stands behind and affects in many aspects the decisions that happened to be decisive for those tumultuous times, thus I can give a better insight on the topic to the people observing from abroad. Therefore, I have attempted to give an objective and straightforward analysis and explanation behind the history, structure, past and present challenges of the Bulgarian currency board, and its advantages and disadvantages that it has had in the country. I hope the information is clear and useful enough to create awareness in the other EU countries of the main arguments and disputes surrounding this pegged system and in general help toward forming a basis for a proper decision making.
There were some limitations in the course of work; i.e denied access to some of the materials and articles as they are available only when accessed from Bulgaria. Despite the difficulties, I managed to get a broad scope of sources- domestic and international ones, to come up with the final coherent piece of work that I have the honour to present to you. Further down, in the Introduction part, I have elaborated deeper on the way how I have prepared and structured the investigated topic of my bachelor thesis.
Keywords: currency board, “orthodox” currency board, pegged currency, anchor currency, monetary policy, Bulgarian monetary policy, economic crisis, financial crisis, inflation, depreciation, current account deficit, ERM 2, Bulgarian politics, Bulgaria, EU, IMF, Bulgarian National Bank, Eurozone
Published: 05.05.2011; Views: 2103; Downloads: 73
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Organizational dimensions of global change : no limits to cooperation
Keywords: international cooperation, cooperation, world economy, socio-economic development, globalization, knowledge, leadership, crises, sense, social change, economic structures, restructuring, economic policy, economic cooperation
Published: 01.06.2012; Views: 973; Downloads: 43
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The boundaries of the firm : critiques, strategies and policiesNeil M. Kay
Keywords: enterprise, economic theories, economists, cognition, keynesianism, acquisitions, mergers, strategic alliances, boundary, business policy, corporations, strategic management, hypothesis, sinergy, economic structures, economic structures, joint venture, integration, business cooperation, management, business efficiency, success of business operation
Published: 01.06.2012; Views: 1175; Downloads: 19
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International economicsRobert J. Carbaugh
, higher education textbook
Keywords: international economic relations, globalization, models, economic theories, economic equilibrium, regulation, international finances, tariffs, international traffic of payments, international banks, international banking, international trade, industrial policy, trade policy, exchange rate, international exchange, world, payments, open economy, macroeconomics, economic policy, developed countries, developing countries, multinational companies, balance of payments, texbooks, cases, case study
Published: 02.06.2012; Views: 1018; Downloads: 17
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Recent transformation of economic inequality in NUTS 3 regions in SloveniaLučka Lorber
, 2011, original scientific article
Abstract: The restructuring of the economy and transition to a market economy have had different impacts on the economic position of regions. The level of impact that changed economic and socio-political circumstances caused in the individual regions depended on various factors: the economic structure of the regions, their ability to reroute onto foreign markets, development potentials, development strategies, and their strategic decisions. Development problems are distinctive predominantly in areas suffering from structural backwardness and economic weakness with predominantly rural orientation, areas facing demographic problems, low income per inhabitant and high unemployment rate. The peripheral nature of the underdeveloped areas caused the emptying of the countryside and concentrating of the population in urban centers. Unfavorable demographic picture, emigration of the young, poor educational structure and shortage of adequate staff, and absence of strategic decisions had led to an increasing setback of the underdeveloped regions compared to the developed ones. The results of empirical analyses of division NUTS 3 regions in Slovenia into groups, taking into account the selected development indicators, lead to the conclusion that economic development has not been conducted in the context of modern understanding of balanced regional development and in accordance with the principle of integrity of implementing regional policy in the entire state territory. The existing regional developmental differences confirm the thesis that market mechanism on its own will not reduce economic inequality and substantiate the need for efficient conduct of regional policy.
Keywords: Slovenia, regional development, regional disparities, regional policy, transition, economic inequality
Published: 07.06.2012; Views: 726; Downloads: 18
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EXCHANGE RATE REGIME AND BAHAVIOUR OF ECONOMIC PARTICIPANTSNeven Vidaković
, 2012, doctoral dissertation
Abstract: This thesis investigates the impact of the exchange rate regime choice on participants in the economy. The usual approach to the investigate the impact of the exchange rate changes in the economy is to investigate how do the changes in the exchange rate value impact the changes in the inflation rate. In order to stabilize inflation many central banks often adopt fixed or very stable exchange rates. This thesis takes another approach entirely and contests the narrow view of the exchange rate to just inflation. This thesis postulates that the choices of the exchange rate regime in itself dictates the behavior of economic agents. Under different exchange rate regimes the economic participants will make different choices and the difference in choices will be exhibited in the economic data. So economies with different exchange rate regimes will have different data properties for same economic variables.
The focus of analysis is the transition small open economies which have to make a choice between stable and variable exchange rate regime. The interaction between participants in the economy is investigated through a dynamic model with optimizing agents under two states: stable and variable exchange rate regime. The participants analyzed in the thesis are: central bank, banks, households, firms and governments. Each participant makes optimal choices under each state of the exchange rate regime. Once the model is implemented interactions between the participants is investigated and how different choices change the data behavior. The model created is heavily skewed towards the impact of the monetary policy on the economy and does not investigate deeply into the fiscal policies.
The predictions from the model are compared to the actual data on a sample of 10 transition economies: Bulgaria, Czech Republic, Croatia, Estonia, Hungary, Latvia, Lithuania, Romania, Slovakia, Slovenia. The model does very well in terms of the monetary variables like foreign debt, household debt. From the data it is clear there are possible fiscal policies which could offset the effects of a particular exchange rate regime, but on the data set this was only done in Czech Republic.
Comparing the model and the data it is clear the choice of the exchange rate regime and the change of the exchange rate regime (switch in the regime) does cause different economic behavior of economic participants. This brings another light to the influence of the monetary policy on the economy since from the model and the data it is clear the choice of the exchange rate regime play a significant role in the process of decision making of economic participants. The model predicts and the data confirms there is a considerable differences in the economic variables between the two regimes. The most striking differences are in: household debt and foreign debt. The model and the data both show the variable exchange rate is superior to stable exchange rate regime
Keywords: exchange rate regime, dynamic optimization, economic participants, monetary policy
Published: 22.07.2014; Views: 836; Downloads: 63
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Gospodarska diplomacija in varnost v času krizeDejan Romih
, 2013, polemic, discussion, commentary
Keywords: economy, diplomacy, economic policy, international relations, crises, financial crisis, economic crises
Published: 01.08.2018; Views: 108; Downloads: 24
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