Abstract

Three distinct periods can be outlined in Bulgaria’s most recent history: (1) 1990-1997; (2) 1997-2008 ; (3) after 2008. The particularities of these periods show up in the structures of the balance of payments too. The changes have become especially sensitive over the last period. There has been a reorientation in both domestic and external cross border capital flows. As a result the country’s economic problems have acquired substantially different dimensions. The study makes an attempt to find out the special features of these dimensions and reveal their nature and driving forces. The main conclusion is that the emerging and current economic problems are to a great degree the outcome of wrong domestic macroeconomic policies. Some suggestions how to overcome the present economic failures have been made.