Some Reflections on Currency Boards
Central Banking, Monetary Policies, and the Implications for Transition Economies, Mario I. Blejer and Marko Skreb, eds., Kluwer Academic Publishers, 1999
27 Pages Posted: 23 Jan 2013
Date Written: 1999
The dramatic events in Asia and Russia, and the contagion they have spread, have generated a torrent of commentary about exchange rates, hot money, and exchange controls. As someone who was deeply involved in Indonesia and who predicted that the ruble would collapse by midyear, I offer my views as to why most of the commentary has been either half-baked or simply wrong. Indeed, in most instances the international chattering classes have misdiagnosed the patient and, in consequence, prescribed the wrong medicine. A correct diagnosis requires an understanding of alternative exchange-rate regimes.
Keywords: Steve Hanke, Currency Boards, Central Banking, Asia, Russia, Rouble, Ruble
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