Estonian Economy and Monetary Policy 12/2000

Monetary Developments & Policy Survey. December 2000

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
Monetary Developments
Financial Intermediation
Inflation
Real Sector and Foreign Trade
BACKGROUND INFORMATION
ECONOMIC FORECAST FOR 2000-2002
External Environment
Export
Gross Domestic Product
External Balance and Financing of Economic Growth
Inflation
Why Can the Actual Development Differ from the Prognosis?
II. ECONOMIC DEVELOPMENTS
EXTERNAL ENVIRONMENT
The United States of America and Japan
Emerging Countries
European Economics
Central and East European Countries
Financial Markets
Prices for Raw Materials
Foreign Exchange Markets
Stock Markets
Interest Rates
Capital Markets in Emerging Countries
ESTONIAN ECONOMY
Domestic Demand
Private Consumption and Investments
Public Sector
Domestic Saving
Domestic Supply
External Sector
BACKGROUND INFORMATION
FACTORS AFFECTING THE EXCHANGE RATE OF THE EURO
III. INFLATION
Anticipated Acceleration of Inflation
The Trends of Key Indicators are in Compliance with Long-term Developments
Dynamics of Other Price Indices
REER and Competitiveness
IV. MONETARY POLICY ENVIRONMENT
Monetary Environment in Estonia and Euro-zone
Capital Flows
Monetary Aggregates
Money and Foreign Exchange Markets ´
Liquidity Buffers
Money Market Interest Rates and Turnover
Forward Market
Credit Market
Loan Aggregates
Interest Rates in Real Sector
V. FINANCIAL SECTOR
Banking
Banks' Assets and their Quality
Liabilities
Return on Equity
Securities Market
Stock Market
Bond Market
Other Financial Intermediaries
Insurance
Leasing
Investment Funds
Payment System