The Stability of Currency Boards

• Tác giả: Kai Stukenbrock
• Ngôn ngữ: eng
• Thông tin xuất bản: Bern Peter Lang International Academic Publishing Group 2018
• Mô tả vật lý: 1 electronic resource (238 p.)
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 237011
• Chủ đề: 1. Economic history; 2. Economic theory & philosophy; 3. Monetary economics; 4. Politics & government

Tóm tắt

The 1990s saw a revival of the currency board system, and proponents have advocated it as an easy-to-set-up exchange rate arrangement providing effective stabilization of the economy. However, the experience of Argentina has highlighted the risks of having a currency board. This study presents both the potential benefits, as well as the risks, of having a currency board by examining the stability of the currency board arrangement and identifying factors affecting the stability. The analysis is based on second-generation currency crisis models, extended to incorporate currency-board specific features and to account for particular aspects often found in currency-board economies.