Paberimajandus

Paberimajandus is a term used to describe the national economy of Estonia, particularly in the context of its post-Soviet transition to a market-oriented economy. At the heart of this transformation was the introduction of paper money, both as a means of facilitating commerce and as a way of establishing the country's independence.

Prior to the 1990s, Estonia's economy was heavily controlled by the Soviet Union, with the ruble serving as its primary currency. However, with the collapse of communism and Estonia's declaration of independence in 1991, there was a need for a new national currency to stabilize the economy and establish fiscal control.

In 1992, Estonia switched to the paper-based Estonian kroon (EEK), which was pegged to the Swedish krona. This decision allowed Estonia to steadily adjust its exchange rate, limiting inflation and gradually creating a stable monetary framework. The kroon quickly gained international recognition, and Estonia was able to establish formal trade relationships with other countries.

The switch to a paper-based currency enabled Estonia to transition from a highly controlled economy to a more market-driven economy. Businesses could now transact freely, rely on a widely accepted national currency, and participate in international trade and investment networks. Paberimajandus played a pivotal role in facilitating this transition, providing a reliable foundation for Estonia's economic growth and development.