Estonian Economy and Monetary Policy 2/1999

Monetary Developments & Policy Survey. Third Quarter of 1999

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
Monetary Developments
Financial Sector
Real Economy and External Sector
Government Sector
Economic Policy Conclusions
II. ECONOMIC DEVELOPMENTS IN THE AUTUMN OF 1999
EXTERNAL ENVIRONMENT
Developed Countries
Emerging Countries
Price Developments
Prices for Raw Materials
Stocks
Interest Rates
Currencies
ESTONIA'S ECONOMY
Domestic Demand
Private Consumption and Investments
Government Sector
Domestic Saving
Domestic Supply
External Sector
Trends in the Immediate Future
BACKGROUND INFORMATION
WHY WAS THE 1999 GROWTH FORECAST OVERESTIMATED?
EXPORT OF ESTONIA'S SERVICES AFTER THE CRISIS
III. INFLATION
Consumer Prices
Other Prices
IV. MONEY AND CREDIT MARKETS
Capital Flows
Monetary Aggregates
Money Market
Liquidity Buffers in the Banking Sector
Short-Term Interest Rates
Estonia's Inter-Bank Money Market Interest Rates and Turnover
Weighted Average Short-Term Lending Rates
Credit Market
Long-Term Interest Rates
BACKGROUND INFORMATION
PREPARATION STRATEGY FOR THE EUROPEAN ECONOMIC AND MONETARY UNION
Monetary Policy Aspects in the Enlargement Process of the European Union
Estonia's Monetary Policy Framework Until Accession to the Euro-zone
V. FINANCIAL SECTOR
Banking
Banks' Assets and Their Quality
External Liabilities
Return on Equity
Securities Market
Bond Market
Stock Market
Other Financial Intermediaries
Insurance
Investment Funds
Leasing
Payment System