CURRENCY BOARD IN BULGARIA, ESTONIA AND LITHUANIA - ESSENCE, DEVELOPMENT, COMPARATIVE ANALYSIS
Author: Elena Vladimirova Panayotova (University of National and World Economy)
Keywords: currency boards, euro area, Bulgaria, Estonia, Lithuania
The study analyses Bulgarian currency board and emphasis on the reasons why it has been introduced, the differences with the orthodox currency board, as well as the results that have been achieved. A number of indicators present the currency board effectiveness. Despite the fact that it brought stability and confidence this monetary regime should be seen as temporary and transitional which has been leading Bulgaria to a successful eurozone entry. The Bulgarian currency board is compared to Estonian and Lithuanian currency boards. This analysis is really important for Bulgaria, as Estonia and Lithuania have successfully joined the euro area after currency board regimes. This is an example and encouragement for Bulgaria to adopt the euro after a functioning currency board.
