Monetary regimes, economic stability, and EU accession

Comparing Bulgaria and Romania

Bibliographic Data

ID12301909
AuthorsNikolay Nenovsky (0000-0002-9544-9024, CRIISEA, University of Picardie, France, corresponding author), Kiril Tochkov (0000-0001-8356-1310, Texas Christian University), Camelia Turcu (0000-0002-5403-5829, Université d'Orléans)
Year2013
Volume46
Issue1
Pages13-23
Publication date2013-01-23
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueCommunist and Post-Communist Studies (JOURNAL)
Journal identifiersISSN: 0967-067X • E-ISSN: 1873-6920
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.postcomstud.2012.12.002
OpenAlexW2029664805
LanguageEN
Citations received1
References cited25

This paper traces the origins of the different monetary regimes adopted in Bulgaria and Romania in 1996–97 and examines their performance during the EU accession. The findings indicate that the constraints of the currency board in Bulgaria shifted economic activity towards the private sector, while the discretionary policies in Romania turned public finances into both a contributor and a response mechanism to economic imbalances. While the prospects of EU accession initially enhanced the performance of the monetary anchors, the implicit insurance of EU membership increased moral hazard and led to a rapid rise in private and public debt. The paper also explores the historical parallels between the monetary regimes of Bulgaria and Romania in 1996–97 and 1925–1940

Accession · Convergence (economics · Currency · Currency board · Debt · Economic policy · Economic reform · Economics · European union · Incentive · International economics · Macroeconomics · Market economy · Monetary economics · Moral hazard · Parallels · Political science · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · Russia and Soviet political economy

Tools

Open DOISci-Hub