-
Main Macroeconomic Indicators for the 12 months to June 2007.
Source: Industry Watch based on NSI data.... -
Rational analysis of inflation in Bulgaria
Explanations of some goods’ rising prices in Bulgaria are to a large extent wrong, leading therefore to some wrong policy recommendations. Here are some wrong perceptions:• The rising food prices are a result of a local agriculture problem; hence we must support local farm business,• The cost of living, as measured by the Nation... -
Interest rates already rose
In the beginning of September some of the largest Bulgarian banks undertook a shift in their interest rate policy, as for the first time in a long while banks raised interest on credit. For now the increase is not that significant (in the range 0.25-0.50 percentage points) and is valid mainly for consumer and housing credit. Th... -
Industry Watch released its report Housing Market in Bulgaria/Q3 2007
Industry Watch released its report Housing Market in Bulgaria/Q3 2007. Main topics include:• One of the fundamental preconditions for the mortgage crisis is the loose monetary policy, which the Federal Reserve followed, as in 2006 the base interest rate plunged to 1%. This allowed for people with relatively low income to accumul... -
Inflation in Bulgaria – rationale and impact mechanisms
Inflation of the dollar and the euro, after it has been for several years notable in rapid price growth of industrial commodities, reached agriculture production as well. In the last year food commodities’ prices increased by around 30%, denominated in dollars, and slightly slower, if denominated in euro. This might explain most... -
US mortgage crisis - implications for Bulgaria
?he mortgage-backed securities crisis in the US is a practical demonstration of the monetary theory. The monetary expansion triggers a business cycle, which induces growth of aggregate demand – not only for consumer goods but also for investments in long-term assets. In reality, we witness expansion of economic activity, as long... -
The importance of pension funds is increasing
Pension fund’s net assets increased by 46.7% in the year to June, as the trend is toward considerable growth acceleration in all three segments. The aggregated data from the Financial Supervision Commission show that pension savings expanded to BGN 1.85 billion in the first half-year, and the penetration ratio reached 3.5% of GD... -
Advantages of the flat tax rate
There have been several formal arguments in the discussion regarding introduction of a flat tax rate hitherto: tax reduction, tax competition with other economies in the EU, more fair income tax treatment.Tax treatment is something simple, but on the other hand, revenues generated by personal income tax will continue to grow wit...