What Role for Currency Boards? (Policy Analyses in International Economics #40) (Paperback)

By John Williamson

Peterson Institute for International Economic, 9780881322224, 104pp.

Publication Date: September 1, 1995

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Description

To help overcome its financial crisis, Russia is being urged to create a currency board, which has met with success in other countries such as Argentina, Estonia, and Hong Kong. This study explains what a currency board is and how it differs from a central bank, and examines the advantages and disadvantages of each type of arrangement. The author concludes that currency boards may be quite attractive to small, open economies and a useful prop in those emerging from a very deep macroeconomic crisis, but that their disadvantages outweigh these attractions in most large countries.