Anti-inflation Policy of the Bulgarian National Bank in Currency Board and Degradation of Expertise During Long-term Operation

Abstract

There is a wealth of research on colonial, small, and developing economies that demonstrates the effectiveness of the currency board in overcoming hyperinflation, which is usually the result of political interference in the work of central banks. Simultaneously, there is a lack of research on how the currency board copes with external shocks and with multiple factors that influence inflation processes in a given country. Studies on the quality, expertise, and capacity of the officials serving the currency board over the years and their degradation are also rare and indirectly one such study in Bulgaria is the one from 2017, examining integrity in the banking sector in Bulgaria (Transparency International Bulgaria, 2017).