The Currency Board in Bulgaria: Theoretical Reflections and Empirical Results

12 Pages Posted: 26 Aug 2016

See all articles by Radko Radkov

Radko Radkov

Independent

Andrey Zahariev

D. A. Tsenov Academy of Economics

Date Written: August 26, 2016

Abstract

The aim of the authors is to, via this article, further develop viewpoints regarding the point of intersection between theoretical views on the currency board and the empirical results reported in Bulgaria. In order to achieve this objective, the article has been structured as follows: part one – clarification of the nature of a currency board in light of leading theoretical research on this issue; part two – critical analysis and assessment of the specific features of the currency board in Bulgaria; part three – the rationale behind the authors’ view regarding the fundamental issue of the end of the currency board regime in Bulgaria and its replacement with another system; part four – econometric analysis and assessment of the impact of the external sector of economy on the GDP in Bulgaria under a fixed exchange rate and a high relative volume of foreign trade exchange of goods and services in terms of the GDP; part five – an investigation into the impact of the currency board on Bulgaria’s economic convergence with leading EU economies in the period between 1998 and 2012.

Keywords: Currency Board

JEL Classification: E42, E52, F33, F36

Suggested Citation

Radkov, Radko and Zahariev, Andrey, The Currency Board in Bulgaria: Theoretical Reflections and Empirical Results (August 26, 2016). Available at SSRN: https://ssrn.com/abstract=2830417 or http://dx.doi.org/10.2139/ssrn.2830417

Radko Radkov

Independent ( email )

No Address Available

Andrey Zahariev (Contact Author)

D. A. Tsenov Academy of Economics ( email )

2 Em. Chakarov str.
Svishtov, Veliko Tarnovo 5250
Bulgaria
++35963166251 (Phone)

HOME PAGE: http://www.uni-svishtov.bg/default.asp?page=detailsini&id=953

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