Author: Constantinos Challoumis
This paper seeks to make clear how the concept of the cycle of money works in an actual case scenario like this of the economic system of Bulgaria. The index of the cycle of money suggests how an economic system ought to counteract a monetary crisis and examines how well-structured a country’s economy is. The estimations of the index of the cycle of money of Bulgaria are compared with the global average index of the cycle of money. The estimations reveal that Bulgaria is close to the average global value. Bulgaria’s results show that it is a well-structured economy and can face an economic crisis. The applied methodology stands on the analysis of the theory, mathematical, statistical, and econometrical results. The current work is important as it represents the strength of Bulgaria’s economy to a potential crisis. The results could be achieved by the application of the theory of the cycle of money to a country’s economy. Prior real case scenario conclusions are from Latvia.