Estonian Economy and Monetary Policy 2/1998

Monetary Developments & Policy Survey. Second Half of 1998

CONTENTS

I. SURVEY OF THE ESTONIAN ECONOMY
The Key Indicators of Economy
External Environment and Capital Flows
Money and Credit Market
Financial Sector
Real Economy
Government Sector
External Sector
II. ESTONIA'S ECONOMIC DEVELOPMENT IN THE SECOND HALF OF 1998
External Environment
Industrial Countries
Emerging Countries
Estonia's Domestic Demand
Private Consumption
Wages
Investments
Public Sector
Domestic Supply
Economic Growth
Economic Environment and Crisis in Russia
Sales of Industrial Production
Corporate Financial Indicators
External Sector
Exports
External Financing
BACKROUND INFORMATION - Fiscal Policy and Stabilisation Reserve Fund
III. INFLATION AND PRICE FLEXIBILITY
Consumer Price Index
Competitiveness
Price Level Linkage with Commodity and Labour Markets
BACKGROUND INFORMATION - Estonia's Price Level Compared to the Other European Countries
IV. MONEY AND CREDIT MARKET
Capital Flows and Monetary Aggregates
Capital Flows by Sectors
Growth Rate of Monetary Aggregates
Structure of Monetary Aggregates
Liquidity and Money Market, Money Market Interest Rates
Liquidity
Money Market
Money Market Interest Rates
Forward Market
Credit Market
Long-term Interest Rates
BACKGROUND INFORMATION - Introduction of the Euro
Real Interest Rates
V. FINANCIAL SECTOR
Banking System
Banks' Assets and Their Quality
Liabilities and Own Funds
Return on Equity
Institutional Development
Securities Market
Bond Market
Stock Market
Other Financial Intermediaries
Leasing Companies
Insurance
Investment Funds
BACKGROUND INFORMATION - The Institutional Reform in the Financial Sector Supervision in Estonia
Payment System