Income Policy During the 90-ties: State, Effects and Long-term Perspective

Vassil Tsanov
Authors registered in the RePEc Author Service: Vasil Tzanov

Economic Thought journal, 2001, issue 1, 3-22

Abstract: The article does an overall analysis of the income policy during the 90-ties. Because of the fact that income is one of the main macroeconomic stabilising factors, the implemented policy has predominantly restrictive character. The Bulgarian economy entered into a deep and prolonged income crisis, as a result of the restrictions and of the unfavourable internal and external economic environment. The measurements of the income crisis are identified and investigated. The deepness and the scope of this crisis are expressed by a considerable decrease of the real incomes, an increase of the differentiation of earnings, lagging of minimal wages in respect of inflation, formation of unfavourable income structure and others. The economic and social effects are connected with a wide expansion of poverty, decrease of consumption and savings, demotivation of the labour force, a weak dependence of the working salary on economic results, stimulation of the informal economy and others. On this basis, conclusions and proposals for changes of the income policy are made, so as to solve the accumulated problems and answer the challenges of Bulgaria’s accession to the EC.

JEL-codes: E24 E64 (search for similar items in EconPapers)
Date: 2001
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ceeol.com/aspx/issuedetails.aspx?issuei ... 97-a6bf-bc5d7d84d02f
Fee access

Related works:
Journal Article: The Wage Policy during the 90’s: Condition, Effects, and Long-term Perspective (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bas:econth:y:2001:i:1:p:3-22

Access Statistics for this article

More articles in Economic Thought journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().