The Bulgarian Financial Crisis of 1996–1997: A Crisis of Transition


Essay, 2009

10 Pages, Grade: A


Abstract or Introduction

Since the fall of communism in the end of 1989 Bulgaria has been experiencing severe economic difficulties. In 1996 the problems of the country’s transition culminated in one of the most severe banking and currency crises in Eastern Europe – the Bulgarian financial crisis of 1996-1997. The main objectives of this paper are to outline the structural vulnerabilities that led to the crisis, to identify the key characteristics of the “twin” crisis and to analyze the rent-seeking nature of Bulgarian transition.
I will argue that the crisis was an outcome of a moral hazard problem in the Bulgarian economic agents’ behavior and the inadequate and unsustainable policies of the government in the period 1990-1997. The legacies of state-controlled economy were too slow to be overthrown and structural reforms were by and large not implemented up until 1997.

Details

Title
The Bulgarian Financial Crisis of 1996–1997: A Crisis of Transition
College
Central European University Budapest
Grade
A
Author
Year
2009
Pages
10
Catalog Number
V155141
ISBN (eBook)
9783640673698
ISBN (Book)
9783640673377
File size
633 KB
Language
English
Keywords
Bulgarian, Financial, Crisis, Transition
Quote paper
Blagoy Kitanov (Author), 2009, The Bulgarian Financial Crisis of 1996–1997: A Crisis of Transition, Munich, GRIN Verlag, https://www.grin.com/document/155141

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