Bulgaria, CASE Policy Briefs, Europe, financial crisis, fiscal policy, Macroeconomics and macroeconomic policy, stimulus

Bulgaria's Fiscal Expansion: Navigating Through Stormy Waters

When the global economic crisis wreaked havoc across the world, most governments responded with a dramatic increase in spending. Their reactions had two main goals in mind: first, to bailout failing financial systems and second, to substitute the decline in private demand with a boost in aggregate public spending. For Bulgaria, fiscal stimulus programs proved to present their own unique set of challenges.