Dual Inflation Under the Currency Board: The Challenges of Bulgarian EU Accession

William Davidson Institute Working Paper 487

Figure 8. Price dynamics in the tradable and non-tradable sector
(1997:12 = 1)

Price non-tradables ------Price tradables

Before we attempt to make any conclusion of the existence of the BS effect, let’s
first see what its direct econometric estimation as stated in equation (1) is. We apply the
econometric technique developed by Halpern and Wyplosz (2001). It might be surprising
but the results of the tests of the BS equation for the period starting with the CB
introduction in Bulgaria (1997:07 - 2001:12) are not very convincing even in terms of
rates (dynamic BS effect):

(2) log(PNT/PT) = 2.38 - 0.04logQT + 0.20logQNT + MA(1) + MA(2)

(20.5) (-2.7) (12.4) (8.1) (1.4)

R² = 0.97, R²adj = 0.96, DW = 1.76

More intriguing information

1. Top-Down Mass Analysis of Protein Tyrosine Nitration: Comparison of Electron Capture Dissociation with “Slow-Heating” Tandem Mass Spectrometry Methods
2. The name is absent
3. Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from the German Brewing Industry
4. Implementation of Rule Based Algorithm for Sandhi-Vicheda Of Compound Hindi Words
5. Industrial Cores and Peripheries in Brazil
6. Permanent and Transitory Policy Shocks in an Empirical Macro Model with Asymmetric Information
7. Distribution of aggregate income in Portugal from 1995 to 2000 within a SAM (Social Accounting Matrix) framework. Modeling the household sector
8. How does an infant acquire the ability of joint attention?: A Constructive Approach
9. The name is absent
10. The Role of State Trading Enterprises and Their Impact on Agricultural Development and Economic Growth in Developing Countries
11. Flatliners: Ideology and Rational Learning in the Diffusion of the Flat Tax
12. Evolutionary Clustering in Indonesian Ethnic Textile Motifs
13. The name is absent
14. Factores de alteração da composição da Despesa Pública: o caso norte-americano
15. The name is absent
16. Testing Hypotheses in an I(2) Model with Applications to the Persistent Long Swings in the Dmk/$ Rate
17. The name is absent
18. Testing Gribat´s Law Across Regions. Evidence from Spain.
19. The name is absent
20. Strategic Effects and Incentives in Multi-issue Bargaining Games