A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?
Fiche du document
2020
- ISIDORE Id: 10670/1.211fb2...
- hal: hal-02962539
- doi: 10.1080/09538259.2020.1787002
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1080/09538259.2020.1787002
info:eu-repo/semantics/OpenAccess
Mots-clés
Inflation money supply exchange rate E - Macroeconomics and Monetary Economics P - Economic SystemsSujets proches
Money stock Supply of money Quantity of moneyCiter ce document
Sébastien Charles et al., « A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate? », HALSHS : archive ouverte en Sciences de l’Homme et de la Société, ID : 10.1080/09538259.2020.1787002
Métriques
Partage / Export
Résumé
This note aims at analyzing Bulgaria’s high inflation regime during the 1990s. Two competing causes of high inflation are explored: changes in the rate of growth of the money supply in the economy and changes in the foreign exchange rate. Both correspond to traditional theoretical explanations: the monetarist view and the balance of payments approach. Evidence suggests that a variation in the exchange rate is significant in explaining the high inflation regime in Bulgaria whereas monetary growth appears to be insignificant. Consequently, the paper underlines the importance of stabilizing the exchange rate in the short run in order to avoid high inflation.
