Monetary Policy in 1992: Instruments and Results

The paper analyses the monetary policy in Bulgaria for the period 1991-1992. The most commonly used by the national bank monetary instruments are described and the effects of their application are depicted. The results generally do not fulfill the expectations due to opportunities to roundabout the restrictions. The paper identifies deepening mismatch between the structure of financial and real flows that triggers inflationary pressures, credit portfolio deterioration and economic slowdown.