IDEAS home Printed from https://ideas.repec.org/p/hwe/certdp/9606.html
   My bibliography  Save this paper

The Political Economy of Macroeconomic Developments, Central Bank and Tax System

Author

Listed:
  • V. Vensel

Abstract

Estonia has made significant progress in the liberalisation of the economy and in macroeconomic stabilisation during the last years of economic transition. Tight monetary and fiscal policies have been the main factors of the macroeconomic stabilisation, and there are some important signs concerning the early stages of economic recovery. Some precautionary remarks include: a rapidly increasing trade balance deficit, high inflation, problems with collecting budgetary revenue, tax avoidance (and great tax arrears), the deepening of economic inequality, and increased political pressure by various interest groups to change successful economic policies. The currency board system with a pegged exchange rate regime is the corners tone of Estonian monetary policy. Some empirical results of the Estonian commercial banking systems performance is analysed and presented in the paper. For example, there was an overall decline in market-determined interest rates and the interest rate spread decreased substantially over the last year.

Suggested Citation

  • V. Vensel, 1996. "The Political Economy of Macroeconomic Developments, Central Bank and Tax System," CERT Discussion Papers 9606, Centre for Economic Reform and Transformation, Heriot Watt University.
    • Handle: RePEc:hwe:certdp:9606
    as

    Download full text from publisher

    File URL: http://www2.hw.ac.uk/sml/downloads/cert/wpa/1996/dp9606.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hillman, Arye L., 1994. "The transition from socialism: An overview from a political economy perspective," European Journal of Political Economy, Elsevier, vol. 10(1), pages 191-225, May.
    2. Adam G. G. Bennett, 1993. "The Operation of the Estonian Currency Board," IMF Staff Papers, Palgrave Macmillan, vol. 40(2), pages 451-470, June.
    3. repec:imf:imfpdp:9418 is not listed on IDEAS
    4. Mr. Michael Marrese & Mr. Mark Scott Lutz & Mr. Tapio Saavalainen & Mr. Vincent Koen & Mr. Biswajit Banerjee & Mr. Thomas Krueger, 1995. "Road Maps of the Transition: The Baltics, the Czech Republic, Hungary, and Russia," IMF Occasional Papers 1995/010, International Monetary Fund.
    5. Mr. Adam Bennett, 1993. "The Operation of the Estonian Currency Board," IMF Policy Discussion Papers 1992/003, International Monetary Fund.
    6. Mr. Adam Bennett, 1994. "Currency Boards: Issues and Experiences," IMF Policy Discussion Papers 1994/018, International Monetary Fund.
    7. Mr. Tapio Saavalainen, 1995. "Stabilization in the Baltic Countries: A Comparative Analysis," IMF Working Papers 1995/044, International Monetary Fund.
    8. Yavlinsky Grigory & Braguinsky Serguey, 1994. "The Inefficiency of Laissez-Faire in Russia: Hysteresis Effects and the Need for Policy-Led Transformation," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 88-116, August.
    9. Mr. Daniel Citrin & Ashok Lahiri, 1995. "Policy Experiences and Issues in the Baltics, Russia, and Other Countries of the Former Soviet Union," IMF Occasional Papers 1995/005, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Freytag, 2001. "Why Have Some Monetary Reforms Succeeded and Others Not? - An Empirical Assessment," IWP Discussion Paper Series 04/2001, Institute for Economic Policy, Cologne, Germany.
    2. Andreas Freytag, 2005. "The credibility of monetary reform – New evidence," Public Choice, Springer, vol. 124(3), pages 391-409, September.
    3. Nenovsky, Nikolay & Hristov, Kalin, 2002. "The new currency boards and discretion: empirical evidence from Bulgaria," Economic Systems, Elsevier, vol. 26(1), pages 55-72, April.
    4. repec:lic:licosd:9601 is not listed on IDEAS
    5. De Melo, Martha & Denizer, Cevdet, 1997. "Monetary policy during transition : an overview," Policy Research Working Paper Series 1706, The World Bank.
    6. de Haan, Jakob & Berger, Helge & van Fraassen, Erik, 2001. "How to reduce inflation: an independent central bank or a currency board? The experience of the Baltic countries," Emerging Markets Review, Elsevier, vol. 2(3), pages 218-243, September.
    7. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
    8. P. Honohan, 1997. "Currency board or central bank? Lessons from the Irish pound’s link with sterling, 1928-79," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 50(200), pages 39-67.
    9. Chris Melliss & Mark Cornelius, 1994. "New currencies in the Former Soviet Union: a recipe for hyperinflation or the path to price stability," Bank of England working papers 26, Bank of England.
    10. Jérôme Sgard, 1996. "Credit Crisis and the Role of Banks During Transition: a Five-Country Comparison," Working Papers 1996-08, CEPII research center.
    11. Holger Wolf, 2016. "Currency boards as a path towards the Eurozone: lessons from the Baltics," International Economics and Economic Policy, Springer, vol. 13(1), pages 45-57, January.
    12. Nikolay Nenovsky, 2001. "The Currency Board in Estonia, Lithuania and Bulgaria: Comparative Analysis," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 24-45.
    13. Schweickert, Rainer, 1998. "Chancen und Risiken eines Currency Board Systems," Open Access Publications from Kiel Institute for the World Economy 1786, Kiel Institute for the World Economy (IfW Kiel).
    14. Barry Eichengreen., 1993. "International Monetary Arrangements for the 21st Century," Center for International and Development Economics Research (CIDER) Working Papers C93-021, University of California at Berkeley.
    15. Petracchi, Cosimo, 2022. "The Mussa puzzle: A generalization," European Economic Review, Elsevier, vol. 149(C).
    16. Schrader, Klaus, 1994. "Estland auf dem Weg zur Marktwirtschaft: eine Zwischenbilanz," Kiel Discussion Papers 226, Kiel Institute for the World Economy (IfW Kiel).
    17. Jacques Le Cacheux & Sandrine Cazes, 1994. "Échanges extérieurs et paiements dans les Républiques de la CEI," Revue Économique, Programme National Persée, vol. 45(3), pages 561-574.
    18. Owen F. Humpage & Jean M. McIntire, 1995. "An introduction to currency boards," Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-11.
    19. Rainer Schweickert, 1995. "Searching for credible exchange rate regimes in the former Soviet Union," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 30(3), pages 126-132, May.
    20. Matthias Sutter, 1996. "A currency board for European Monetary Union outsiders," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 31(3), pages 131-138, May.
    21. Mr. Adalbert Knöbl & Mr. Richard D Haas, 2003. "IMF and the Baltics: A Decade of Cooperation," IMF Working Papers 2003/241, International Monetary Fund.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hwe:certdp:9606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Colin Miller (email available below). General contact details of provider: https://edirc.repec.org/data/cehwuuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.