Abstract
Following a severe financial crisis in 1996 and early 1997 Bulgaria established a currency board. In many respects the currency board has been a great success. From hyperinflationary levels in February 1997, inflation fell to single-digit levels in 1998 and 1999. The economy has also begun to grow. While enormously successful so far, the currency board has only been in place for a short time. This paper outlines prospective problems that must be faced and explores whether the currency board is sustainable in the longer-run.
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