In 1996/1997 Bulgaria was hit by a severe financial crisis, spreading from a banking crisis to a currency crisis. However, in comparison to the Asian, the Russian or the recent Tango Crisis the Bulgarian Crisis did arouse relatively low international interest. We argue that the Bulgarian...

As long as Eastern Europe and the USSR have unsound currencies, they will be unable to transform themselves into market economies. A sound, convertible currency allows people to carry out decentralized planning, which is more efficient than central planning. In nations with so-called internally...

Bulgaria needs to give its monetary reform instant credibility, to avoid the dangers of continuing inflation on the one hand and depression on the other. A fixed exchange rate system with a central bank always fails. There is, however, one proven system that will successfully maintain a fixed...

For an economy to function well, it needs a currency that people can use to purchase a wide variety of goods and services, that is readily convertible into foreign exchange, and that is a reliable store of value. The currencies of most less-developed countries, as well as those of the Soviet...