Some New Insights into Currency Boards: Evidence from Bulgaria
24 Pages Posted: 10 Jun 2008
Date Written: January 2008
Abstract
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.
Keywords: Currency Board, monetary policy, SVAR, Bulgaria
JEL Classification: E42, E52
Suggested Citation: Suggested Citation
Minea, Alexandru and Rault, Christophe and Rault, Christophe, Some New Insights into Currency Boards: Evidence from Bulgaria (January 2008). William Davidson Institute Working Paper No. 903, Available at SSRN: https://ssrn.com/abstract=1140774 or http://dx.doi.org/10.2139/ssrn.1140774
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.