Bulgaria used as an example of an Eastern European economic transition. Presents the most important facts about the country and the economic development in the communist years. Looks at the challenges of the early years of the transition and the financial crisis of 1997, which Eastern European countries to common problems – the high social costs of the reforms depends Central Bank, hyperinflation and currency devaluation. Also, the currency board sees to read his successes (macroeconomic stability … More »

Bulgaria used as an example of an Eastern European economic transition. Presents the most important facts about the country and the economic development in the communist years. Looks at the challenges of the early years of the transition and the financial crisis of 1997, which Eastern European countries to common problems – the high social costs of the reforms depends Central Bank, hyperinflation and currency devaluation. Also sees the currency board, its successes (macroeconomic stability and improved the country’s image among international investors) and challenges (high social costs due to the strong reduction of the budget deficit and large current account deficits through real appreciation of the Bulgarian Lev). Discusses trade and the competitiveness of the Bulgarian economy, and the economy in 2004. Finally, an overview of the EU accession process: Can 2007 be considered a safe entry for Bulgaria? What new challenges the country will face after accession?
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from
Jordi Gual,
M. Stroumina
Source: IESE
27 pages.
Publication Date: Apr 21,, 2005. Prod #: IES096-PDF-ENG
Bulgaria: On the road to EU membership HBR case solution