Programs

Implications of Currency Boards in Transition Economies

The format of the project was academic research in the field of monetary theory and policy in a cooperative effort of researchers from Estonia, Bulgaria, and Western Europe.
The goal of the project was to conduct research related to the functioning and the implications of currency board arrangements (CBAs) in the context of transition. The attention was concentrated on two transition economies, which have introduced CBAs during their transition - Bulgaria and Estonia. The operation and the effects of the CBAs were viewed from microeconomic, macroeconomic and monetary-theoretic, and political economic points of view in an attempt to present an assessment of the CBA implications which is more complete and more context-based than what was common in the literature on CBAs so far.
In February 2001 the CLS participant completed the research paper and submitted it to the project coordinator. The paper uses a comparative and analytical perspective to formulate relevant and useful lessons for Bulgarian policy makers from the longer Estonian experience with a Currency Board Arrangement. More information on the full project can be found at http://www.iiasa.ac.at

Period: May 1999 - February 2001
Coordinators: Georgy Ganev
Economic Perspectives