The transition crisis in Bulgaria

In 1996-97, while making its way through a difficult processof economic and political transformations, Bulgaria was hitby a severe economic crisis. This paper seeks to reveal andanalyse the underlying factors and causes of this crisis. Itfocuses on empirical issues but also highlights some basic causalitiesand interrelations between economic variables during the crisisas well as the role of economic policy. The economic turmoilin Bulgaria is addressed from three different perspectives:(1) the historic roots of the crisis; (2) the actual evolutionof the fiscal, banking and currency crises, and (3) the politicaleconomy of the transition in Bulgaria.