In 1997, Bulgaria was in financial meltdown with hyperinflation making money in the country worth a lot less. Bulgaria had emerged out of communism following the fall of the Soviet Union in 1989.

Like other post-Soviet regimes in eastern Europe, the country found the transition from communism to capitalism harder than expected. The President of Bulgaria, Petar Stoyanov, knew he had to do something and a recovery plan from one of Ronald Reagan’s former economic advisers was on the table. But would it work?

Matt Pintus has been speaking to the economist, Steve Hanke.

Photo: Steve Hanke and Liliane Hanke meet Petar Stoyanov. Credit: Steve Hanke