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The money market and monetary policy during economic transition

Author

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  • Petranov, Stefan

Abstract

The paper considers the extent to which the conditions for efficient monetary policy are present during the transition period from centrally planned to a market economy. The author concludes that the peculiarities of transition are cause for much uncertainty in the money market, and hence, result in low monetary policy efficiency. Therefore there is a need for improvement in the identification and projection of money market conditions, and the establishment, to the extent possible, of a stable regulatory framework. The paper proves the need for monetary policy comprehensiveness in terms of the interrelation between money supply control and foreign exchange policy.

Suggested Citation

  • Petranov, Stefan, 1996. "The money market and monetary policy during economic transition," MPRA Paper 105425, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105425
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    References listed on IDEAS

    as
    1. William Poole, 1969. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Special Studies Papers 2, Board of Governors of the Federal Reserve System (U.S.).
    2. William Poole, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(2), pages 197-216.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bulgaria; economic transition; monetary policy; foreign exchange policy;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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