Dynamics of the Financial Wealth of the Institutional Sectors in Bulgaria for the Period 1990 – 2005

Abstract

The transitional period is always connected to redistribution processes and change in the financial wealth of the economic agents. The examination of the redistribution of wealth and its dynamics is important related to the possibilities for a more complete study and rationalization of the changes that occurred in the economy. In this connection the dynamics of financial wealth of the institutional sectors in Bulgaria for the period 1990 – 2005 is assessed and analyzed. The main net creditors and debtors to the economy are differentiated and their behavior before and after the change of the monetary regime is examined. Econometric simulations are made on the main factors that determine the shift in the sector financial wealth. In the progress of the expose grounded is the hypothesis (which to a great extent is confirmed by the empirical results) for a functional relation between the dynamics of redistribution and the change of the monetary regime.