The money market and monetary policy during economic transition

Petranov, Stefan (1996): The money market and monetary policy during economic transition. Published in: Bulgarian National Bank Monthly Bulletin No. 6 (1996): pp. 28-32.

Abstract

The paper considers the extent to which the conditions for efficient monetary policy are present during the transition period from centrally planned to a market economy. The author concludes that the peculiarities of transition are cause for much uncertainty in the money market, and hence, result in low monetary policy efficiency. Therefore there is a need for improvement in the identification and projection of money market conditions, and the establishment, to the extent possible, of a stable regulatory framework. The paper proves the need for monetary policy comprehensiveness in terms of the interrelation between money supply control and foreign exchange policy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Bulgaria, economic transition, monetary policy, foreign exchange policy
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; P - Economic Systems > P2 - Socialist Systems and Transitional Economies

References

Balyozov, Z., BNB Monetary Policy in 1996, BNB Monthly Bulletin, issue 2/1996.

Bulgarian National Bank, Major Trends in Monetary Policy, in BNB Annual reports 1991 - 1995.

Filipov, L., Monetary Policy Instruments of the Bulgarian National Bank, Bank Review, issue 1/1994.

Poole, W., Optimal Choice of Monetary Policy Instruments in a Symbol Stochastic Macro model, Quarterly Journal of Economics, 84/1970.

State Gazette, Law on the Bulgarian National Bank, issue 50 of 1991, amend. issue 32 of 1996.