Why Bulgaria needs a managed float

Although it was critical to Bulgaria's economic fortunes at the time, the currency board arrangement introduced on 1 July 1997 needs to be replaced. The simple reason for this is that a precariously large gap has opened between the inflation rate and price level of the eurozone and that of Bulgaria since the introduction of the fixed exchange rate 11 years ago.1 In the decade since the adoption of the currency board, the cumulative increase in prices for the eurozone has been around 20%, comp