Estonian Economy and Monetary Policy 3/2001Monetary Developments & Policy Survey. March 2001CONTENTSI. SURVEY OF THE ECONOMIC POLICYMonetary DevelopmentsFinancial SectorInflationGovernment SectorReal Sector and Foreign TradeII. ECONOMIC DEVELOPMENTS EXTERNAL ENVIRONMENTThe United States of America and JapanEmerging Economic SpaceEmerging CountriesCentral and East European CountriesRussiaFinancial Markets in Developed CountriesESTONIAN ECONOMYDomestic DemandPrivate Consumption and InvestmentsPublic SectorDomestic SavingDomestic SupplyExternal SectorBACKGROUND INFORMATIONNOTES TO ESTONIA'S BALANCE OF PAYMENTS INCOME ACCOUNT Balance of Payments and Gross Domestic Product Current Account Income Balance: MethodologyImplication of Income Account on Current Account in 1993-2000III. INFLATIONPrice Increase Above the Long-Term TrendEstonia's Terms of TradeReal Exchange Rate of the KroonIV. MONETARY POLICY ENVIRONMENT Monetary EnvironmentCapital Flows and Base MoneyMonetary AggregatesMoney and Foreign Exchange MarketsLiquidity AssetsMoney Market Interest RatesCredit MarketLoan AggregatesInterest Rates in Real SectorV. FINANCIAL SECTORBankingBanks' Assets and their QualityLiabilitiesReturn on EquitySecurities MarketStock MarketBond MarketOther Financial IntermediariesInsuranceLeasingInvestment FundsPayment SystemFailidSURVEY OF THE ECONOMIC POLICY.ECONOMIC DEVELOPMENTSNotes to Estonia's balance of payments income accountINFLATIONMONETARY POLICY ENVIRONMENTFINANCIAL SECTORCONTENTS (PDF)