Bulgaria’s Monetary Policy on the Road to the Eurozone

Authors:

Pages: 206-211

Abstract:

This article analyzes Bulgaria’s monetary system during the period of immediate prepara tion for joining the eurozone and its subsequent accession to it. The original thesis is that the currency board ensures a high degree of nominal discipline through a fixed exchange rate, full coverage of the monetary base, and restrictions on discretionary monetary policy, but it is not a sufficient tool for controlling inflation caused by external price shocks, administratively set prices, wage dynamics, and fiscal expansion.

Keywords:

monetary policy; currency board; eurozone; inflation; economic integration.

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