Economics, Econometrics and Finance
4 years ago

Exchange rate, not money supply, drives high inflation in Bulgaria.

RePEc: Research Papers in Economics
A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?
Sébastien Charles, Jonathan Marie

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Belarus' Exchange Rate Policy Could Lead to Soaring Inflation and Devaluation

International Finance
Macroeconomic Analysis
Russian Transformation
2 views
Economics, Econometrics and Finance
4 years ago

Managed exchange rates lead to lower investment and productivity, study finds.

Monetary Models
Macroeconomic Analysis
Public Finance
2 views
Economics, Econometrics and Finance
4 years ago

Transition economies face exchange rate vulnerability due to high inflation rates.

International Finance
1 view

The article looks at why Bulgaria had high inflation in the 1990s. It compares two reasons: how much money was being made and the exchange rate. The study found that changes in the exchange rate were more important in causing high inflation than changes in the money supply. This means that keeping the exchange rate stable is crucial to prevent high inflation in the short term.