Estonian Economy and Monetary Policy 12/2001

Monetary Developments & Policy Survey. December 2001

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
Monetary Developments
Financial Sector
Inflation
Real Economy
Government Sector
Future Prospects
BACKGROUND INFORMATION
ECONOMIC FORECAST FOR 2002-2003
Preconditions and Key Indicators of the Forecast
Negative Scenario
II. ECONOMIC DEVELOPMENTS
EXTERNAL ENVIRONMENT
The United States of America and Japan
European Union
Emerging Countries
International Financial Markets
ESTONIAN ECONOMY
Domestic Demand
Private Consumption and Investments
Public Sector
Domestic Saving
Domestic Supply
External Sector
III. INFLATION
General Development of Prices
Anticipated Slowdown of the Consumer Prices Growth
Estonia's Favourable Competition Position
BACKGROUND INFORMATION
IMPACT OF ADMINISTRATIVE ACTIONS ON THE CONSUMER PRICES INCREASE IN 2002
Changes in the Tax System
Administrative Increase of Regulated Prices
IV. MONETARY SECTOR DEVELOPMENT
Monetary Policy Environment
Estonian Money Market
Capital Flows
Money Supply
Credit Market
Real Sector Interest Rates
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