Abstract

Studied is one of the primary characteristics in the activity of the contemporary central bank – its independence from the executive power. The objective of the study is to track and analyze the degree of dependence between the behavior of BNB from one hand and the activities of the government on the other hand for two relatively determined periods – 1990-1997 and after 1997. The made quantitative estimation of the independence of the central bank is in applying the popular methodology of Al. Tzukerman. The second part of the article is devoted to the specific for Bulgaria characteristics of forming and keeping the independence of BNB before and after the introducing of the rules of the Currency Board. The complex analysis of the independence shows that it is a necessary condition for macroeconomic stability, but its achieving does not guarantee by itself an economic prosperity.