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What municipalities miss when making decisions about local taxes
The Plovdiv municipality made an example how a municipality must not make decisions on the local budget. We do not expect many municipalities to approach discussions on local taxes in 2008 with ultimate transparency. This year is important to tax decentralization in Bulgaria, because municipalities can already determine local ta...
Ready for Business 2008
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How could global economy shocks transfer in Bulgaria
Most analyses on “too high” inflation in recent months in fact started the much broader debate on the transfer of external shocks into the Bulgarian economy. Since several years the global economy works under rising prices of mineral resources and energy sources. When however in 2007 the increasing price of crops was added, the ...
The year of risk
The past 2007 will be remembered as the year of considerable capital market development. The stock exchange trade registered records from intensity and prices’ perspective. In line with this, its attractiveness as a place for raising capital increased – we witnessed not only growing number of initial offerings (some of which rai...
The economy is growing, except for agriculture
Under the best indicators for the economy in the last at least 100 years, in 2007 international analytical companies started the strongest after 1997 campaign for inducing “worries” about the risks before Bulgaria. Most of them point at the currency board as a factor for potential future risks, without saying what a central bank...
The Bulgarian economy in 2008
Overall economic dynamics Economic growth in the following year will be probably around 6.3% annually according to the Industry Watch regular poll among leading Bulgarian macroeconomists, which is organized twice a year. Although we expect faster consumer prices inflation (than the one forecasted in the spring), we do not see r...
Economic overview of 2007
Public finance On a macro level remained the question to what extent the government got used to making not anti-crisis budgets, but rather budgets in a state of rapidly developing economy. The regular growth of revenue accumulation and the realized significant surpluses in the recent years put a reasonable doubt into that. In 20...
Could the government control inflation
We must start with the clarification that by inflation the broad public understands the change in the consumer prices index (CPI). In this frame the monetary policy, creating money supply, is only one of the factors, having influence over prices (i.e. inflation, as perceived that way). So, why this year the NSI registered high ...

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