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P-Star Model under the Currency Board – The Case of Bulgaria 1997-2008

Author

Listed:
  • Mihalicova, Xenia

    (Technical University in Košice, Němcovej 32, 040 00 Košice)

  • Gazda, Vladimír

    (Technical University in Košice, Němcovej 32, 040 00 Košice)

  • Kubak, Matúš

    (Technical University in Košice, Němcovej 32, 040 00 Košice)

  • Grof, Marek

    (Technical University in Košice, Němcovej 32, 040 00 Košice)

Abstract

The paper deals with the P-star model in conditions of the Bulgarian economy operating under the currency board regime. The research period covers 11 years of stabilisation after the Bulgarian 1996/97 financial crisis. Our findings are twofold. First, the significant influence of the German inflation was detected as a result of anchoring the Bulgarian Lev. Second, the domestic price gap influence is showed to be statistically insignificant.

Suggested Citation

  • Mihalicova, Xenia & Gazda, Vladimír & Kubak, Matúš & Grof, Marek, 2011. "P-Star Model under the Currency Board – The Case of Bulgaria 1997-2008," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 83-91, September.
    • Handle: RePEc:rjr:romjef:v::y:2011:i:3:p:83-91
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    P-star model; Bulgaria; inflation; price gap;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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