Estonian Economy and Monetary Policy 6/2001

Monetary Developments & Policy Survey. June 2001

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
Monetary Developments
Financial Intermediation
Inflation
Real Economy
Government Sector
BACKGROUND INFORMATION
ECONOMIC FORECAST FOR 2001-2002
External Environment
Export, Economic Growth and its Financing
Consumer Prices
II. ECONOMIC DEVELOPMENTS
EXTERNAL ENVIRONMENT
The United States of America and Japan
European Economic Space
Emerging Countries
International Financial Markets
ESTONIAN ECONOMY
Domestic Demand
Private Consumption and Investments
Public Sector
Domestic Saving
Domestic Supply
External Sector
BACKGROUND INFORMATION
UNEMPLOYMENT IN THE TRANSITION PERIOD
Employment vs Investments and Productivity
Structural Aspect of Unemployment
III. INFLATION
Temporary Re-acceleration of Price Increase
Price Increase in Sheltered Sector
External Price Pressure
REER and Competitiveness
BACKGROUND INFORMATION
IN 2001 CONSUMER BASKET USED FOR COMPUTATION OF CONSUMER PRICE INDEX CHANGED
IV. MONETARY POLICY ENVIRONMENT
Monetary Environment
Capital Flows
Monetary Aggregates
Liquid Assets
Money Market
Forward Market
Credit Market
Real Sector Interest Rates
BACKGROUND INFORMATION
HARMONISATION OF MONETARY POLICY OPERATIONAL FRAMEWORK (RESERVE REQUIREMENT REFORM)
Currency Board and Strategy to Join the Euro Area
Harmonisation of Operational Framework with EU
Foreign Assets in Meeting Reserve Requirement
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