Template-type: ReDIF-Paper 1.0
Author-Name: Neven Valev 
Author-Email: nvalev@gsu.edu
Author-Homepage: http://aysps.gsu.edu/ValevN.html
Author-Workplace-Name:  International Studies Program. Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Homepage:  https://icepp.gsu.edu/
Author-Name: John A. Carlson
Author-Email:carlson@mgmt.purdue.edu
Title: Beliefs about Exchange-Rate Stability: Survey Evidence from the Currency Board in Bulgaria 
Abstract: We use unique survey data from Bulgaria’s currency board to examine the reasons for persistent incomplete
 credibility of a financial stabilization regime. Although it produced remarkably positive effects in terms of sustained
 low inflation since 1997, the currency board has not achieved full credibility. This is not uncommon in other
 less-developed countries with fixed exchange rate regimes. Our results reveal that incomplete credibility
 is explained primarily by concerns about external economic shocks and the persistent high unemployment in the country.
 Past experiences with high inflation do not rank among the top reasons to expect financial instability in the future. 
Keywords: Credibility; Currency Boards; Financial Stabilization Programs 
Length: 34 pages
Creation-Date: 2004-11-01
File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0424.pdf
File-Format:Application/PDF
Handle: RePEc:ays:ispwps:paper0424