Estonian Economy and Monetary Policy 9/2000

Monetary Developments & Policy Survey. September 2000

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
Monetary Developments
Financial Intermediation
Inflation
Private Consumption and Investments
External Balance
Fiscal Policy
BACKGROUND INFORMATION
MAJOR STRUCTURAL REFORMS IN 2000
II. ECONOMIC DEVELOPMENTS
EXTERNAL ENVIRONMENT
The United States of America and Japan
Emerging Countries
Development in European Economic Space
European Union and Euro Area
Finland
Sweden
Central and Eastern Europe
Development of Financial Markets
Prices for Raw Materials
Currencies
Stocks
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
CHANGES DURING RECESSION PERIOD IN ESTONIA'S ECONOMY
RUSSIA AFTER THE 1998 FINANCIAL CRISIS
Retrospective View
Current Situation and Further Steps
III. INFLATION
REER and Competitiveness
IV. MONETARY POLICY ENVIRONMENT
Monetary Environment in Estonia and Euro-zone
Capital Flows and Formation of Base Money
Monetary Aggregates
Money and Foreign Exchange Markets
Money Market Interest Rates
Forward Market
Credit Market
Interest Rates in Real Sector
BACKGROUND INFORMATION
LOAN GROWTH FOLLOWING ASIAN/RUSSIAN CRISIS IN 1999-2000: CAN THE 1997 BOOM RECUR?
Current Situation
Loan Structure by Sectors
Conclusions
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