Estonian Economy and Monetary Policy 6/2002

Monetary Developments & Policy Survey. June 2002

CONTENTS

I. SURVEY OF THE ECONOMIC POLICY
External Development
Real Sector
Inflation
Monetary Policy Environment
Financial Intermediation
BACKGROUND INFORMATION
ECONOMIC FORECAST FOR 2002-2003
Presumptions and Main Indicators of the Forecast
II. ECONOMIC DEVELOPMENTS
EXTERNAL ENVIRONMENT
The United States of America and Japan
European Economies
Sweden and Finland
Emerging Countries
International Financial Markets
ESTONIAN ECONOMY
Domestic Demand
Private Consumption and Investments
Public Sector
Domestic Saving
Domestic Supply
External Sector
BACKGROUND INFORMATION
BUSINESS CYCLES AND THEIR MEASURING
PROFITABILITY OF FOREIGN DIRECT INVESTMENT AND MEASURING OF FDI
III INFLATION
Stabilisation of the Price Increase
Development of the Real Exchange Rate
IV MONETARY SECTOR DEVELOPMENT
Liquidity Environment and Money Market
Capital Flows
Money Supply
Credit Market
Interest Rates in Real Sector
V. FINANCIAL SECTOR
Banking
Size and Quality of Banks' Assets
Liabilities and Equity
Return on Equity
Securities Market
Stock Market
Bond Market
Other Financial Intermediaries
Insurance
Investment Funds
Payment System