Economics, Econometrics and Finance
4 years ago

Bulgaria's Historical Monetary and Fiscal Policies Unveil Impact on Inflation

Yearbook of St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration
Monetary and Fiscal Policies in Bulgaria: Lessons from the Historical Record
Kalina Dimitrova

Paper Summary

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Monetary and fiscal policies in Bulgaria have different goals: central banks aim for price stability, while governments focus on economic growth and employment. Fiscal institutions use inflation to generate revenue and cover budget deficits. This paper looks at Bulgaria's monetary and fiscal policies since 1879, studying how government budget issues, monetary fluctuations, and inflation are connected. The historical data helps us understand the impact of these policies on the economy over time.