Изпитания пред паричната и бюджетната политика в Еврозоната и България
Challenges to the Monetary and Fiscal Policy in the Eurozone and Bulgaria

Summary/Abstract: This paper reveals key challenges to monetary and fiscal policy in the Eurozone and Bulgaria. For the Eurozone they are primarily linked to: the active, stimulating fiscal and monetary policy before and during the crisis; the high levels of budget deficits and increasing sovereign debt in the context of fragile economic growth, high unemployment, deflation. In Bulgaria, in the framework of Currency Board the political risk and the risk of devaluation pose challenges to the monetary and fiscal policy. It is likely that upon joining the Eurozone governments are tempted to increase budget deficit and public debt because the commitment to full coverage of monetary base with foreign reserves will not exist anymore as well as they may use the opportunity to raise the deficit to 3% of GDP (or even more).

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