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The role of government investments during crisis
Expansionary policy regarding public investments is planned by most of the governments, including the Bulgarian, as it was announced with the presentation of the government budget for 2009. The supporters of public investments as anticrisis measure state that it helps avoiding two main dangers – steady deflation and recession. ...
The real cost of money
Manipulating the interest rates is at least part of the explanation for the current financial crisis. This opinion is shared by most observers, which is one of the positive outcomes of the crisis – it focused our attention on the most heavy source of political risk in mature economies today – the central banks. The central banks...
Could student loans be efficient
From banks’ perspective the providing of state guarantees on credit, granted to students, would limit to a large extent two of the significant problems, which the market practice is facing with this credit segment. Students are borrowers, who are typically associated with high degree of risk – mainly due to the more difficult as...
Inflation, deflation, stagflation
The central bankers have put themselves in very uncomfortable situation, in order to defend the latest cutting of the key interest rates. A consensus has formed that the financial crisis increases recession risks, and therefore – inflationary pressure will inevitably decline. If central bankers look only at consumer prices, this...
Too big to fail or to be saved
When a year ago the first signs for liquidity issues of the American banks emerged, the dominating expectations were that the crisis will affect particular segments of the financial sector, but not the entire financial system. With the aim to improve liquidity the Federal Reserve decided to act aggressively, lowering the target ...
Is the Bulgarian industry about to disappear
The most reliable statistics about the development of material production in Bulgaria in our opinion is the NSI data for foreign trade. In the twelve months before June the export is growing at 20%, measured in euro (some EUR 2.5 billion more), in comparison with the previous 12-month period. Bulgaria tends to become even more o...
Risks before the financial health of Bulgarian households
Theoretically examined, upward price dynamics, combined with rising cost of the credit resource could in begin to reflect unfavorably on the household financial wealth – in other words, on their ability to service their current debt and on their marginal propensity to take on more credit. Although the monetary statistics has in ...
Could the high economic growth in Bugaria be kept
On the day of the Lehman brothers bankruptcy the Bulgarian official statistics reported GDP data for Q2 2008. The contrasts between the bad news on the capital markets and the good news of the 7.1% growth shocked the broad audience. What is more, a month ago the NSI forecasted (based on preliminary data) that the real growth for...

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