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Bulgaria could turn out to be the latest test case both for the future of currency boards and the IMF’s new approach to reform. With some analysts predicting the possible demise of the Bulgarian currency board in 2001, advocates of both approaches must be sweating a little.
Bulgaria’s problem is that of all other transitional economies: how to transform state-owned industrial behemoths into something sleek and modern while steering through the minefield of different interest groups.
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