The Currency Board in Bulgaria: Theoretical Reflections and Empirical Results

Authors

Keywords
currency board, monetary system, Euro zone, currency exchange rate, economic analysis, gross domestic product, convergence.

Summary
Via this article the authors would like to discuss the idea of the inter-section point of theoretical reflections and reported empirical results referring to the currency board in Bulgaria. To achieve the goal defined the article is structured in the following separate sections: first, clarification of the concept of a currency board in light of leading theoretical research; second, critical analysis and evaluation of the characteristics of the currency board in Bulgaria; third, justification of the authors answer regarding the end of the currency board in Bulgaria and its replacement with another system; fourth, econometric analysis and assessment of foreign trade sector influence on the GDP in Bulgaria under the conditions of a fixed currency exchange rate and a high percentage of foreign trade of goods and services in the structure of the GDP; fifth, a study of the currency boards influence on the economic convergence of Bulgaria in comparison with leading EU economies for the period 1998 2012. For the authors, Bulgarias path to membership in the Eurozone while keeping the currency board regime during the whole period of being in the ERM II waiting room is logical and has social and institutional support. The argument for this is that Estonias example of entering the Eurozone by preserving the currency rate at the level of the currency board is the reasonable and rational national project for developing Bulgarias economy and financial system.

JEL: E42, E52, F33, F36
Pages: 12
Price: 2 Points

More titles

  • A methodology for a complex assessment of personnel competitiveness within a company

    In this scientific investigation a model is developed and applied for the comprehensive evaluation of the competitive power and competency of spe-cialists in a specific firm (enterprise, institution and so on). The different criteria used in this assessment and example contents of these criteria are noted. The evaluation is performed by utilizing ...

  • Cloud Computing Technology in Business Process Management

    To achieve competitive advantage today, organizations rely on new technologies, innovative management ideas and their successful symbiosis. Business Process Management is a management concept which has become a key instrument for business transformation. Modern organisations apply this concept to model, automate and optimise their processes. Cloud ...

  • Audit procedures in the assessment of environmental costs

    The article reviews the interdependence between changes in financial reporting and the scope of audit procedures conducted by statutory auditors. It studies the characteristics of the environmental aspects of the integrated fi-nancial framework and their impact on the accuracy of financial and non-fi-nancial information. Some of the challenges ...