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Is The Deficit In The Balance Of Trade A First-Rate Danger To The Financial Stability?

Author

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  • CHAVDAR NIKOLOV

    (SOUTHWESTERN UNIVERSITY ”NEOFIT RILSKI”, BLAGOEVGRAD)

Abstract

The growing deficit in the Bulgarian trade and in the current account is turning with the time in a priority object of concern about the compatibility of the national economy. But the following article illustrates that the main part of the trade deficit is caused by the foreign investment inflow and by the growth of the foreign debt of the private sector of the country. This situation does not justify the contemporary fiscal policy with a “hysterical” accentuation on the budget surplus.

Suggested Citation

  • Chavdar Nikolov, 2006. "Is The Deficit In The Balance Of Trade A First-Rate Danger To The Financial Stability?," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 2(3), pages 2-6.
    • Handle: RePEc:neo:journl:v:2:y:2006:i:3:p:2-6
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