Currency Board Arrangements

Author : Mr.Charles Enoch
Publisher : International Monetary Fund
ISBN 13 : 9781557756688
Total Pages : 68 pages
Book Rating : 4.86/5 ( download)

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Download or read book Currency Board Arrangements written by Mr.Charles Enoch and published by International Monetary Fund. This book was released on 1997-09-05 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive analysis of the attractions and disadvantages of currency board arrangements in their various institutional configurations. It asks what defines a currency board arrangement, what are their strengths and weaknesses, and what constraints they place on macroeconomic policies. It also reviews country experiences with these arrangements.

Author : Svetoslav Pintev
Publisher : diplom.de
ISBN 13 : 3832465499
Total Pages : 81 pages
Book Rating : 4.90/5 ( download)

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Download or read book Currency Board Arrangements. Rationale for Their Introduction, Advantages and Disadvantages written by Svetoslav Pintev and published by diplom.de. This book was released on 2003-03-18 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: Currency board arrangements, under which domestic currency can be issued only to the extent that it is fully covered by the central bank s holdings of foreign exchange, were long generally dismissed as throwbacks to the colonial era. It was argued that such a rigid, rule-based arrangement was not well suited to diversified economies in many of which the authorities had developed sophisticated skills in monetary management. Instead, currency boards were seen as desirable in very small open economies (such as city-states for example). In 1960, 38 countries or territories were operating under a currency board. By 1970, they were 20 and, by the late 1980s, only 9. In the last decade the interest for Currency Board Arrangement (hereinafter CBA) renewed because of its simplicity, transparency, and rule-bound character. It became evident after the successful efforts made by two transition economies-Estonia and Lithuania-which quickly managed to achieve credibility for their newly established currencies. In 1997, a currency board arrangement was introduced in Bulgaria to end the economic crisis. Soon after, Bosnia and Herzegovina followed. In 1998 there have been discussions on establishing a currency board arrangement in Russia. More recently the newly appointed Finance Minister of Poland initiated a debate on pegging the Polish zloty to the euro through a CBA. This paper previews the history of the colonial and modern currency boards and presents the benefits of such a system for the newly emerged transition economies in Eastern Europe and Bulgaria especially. First, we will present a brief description of the currency board system. Currency Board Arrangements after falling into oblivion during much of the post-war period, staged a remarkable comeback mainly in Central and Eastern Europe countries. Estonia, Lithuania, Bulgaria and Bosnia and Herzegovina have introduced this particular monetary framework and as a result have managed to break inflationary inertia, to bolster the credibility of the monetary authorities and to instill macroeconomic discipline. Inhaltsverzeichnis:Table of Contents: I.Introduction 1.What is a currency board? 2.What a currency board is not? II.Origins of the Currency Board 1.Intellectual origin of the currency board system 2.Early Currency Board Systems 3.Decline of the Currency Board system. Reasons 4.Currency board system in nowadays III.Currency Board system and Countries in [...]

Author : Malgorzata Jakubiak
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.85/5 ( download)

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Download or read book Design and Operation of Existing Currency Board Arrangements written by Malgorzata Jakubiak and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper summarizes recent literature on the experience of some existing currency boards. It begins with the definition of the currency board and the description of some existing currency boards. It then discusses advantages and disadvantages of implementing the currency board regime, and concludes with a list of conditions that must be satisfied if a country wants to adopt this monetary framework.

Author : Ms.Anne Marie Gulde
Publisher : International Monetary Fund
ISBN 13 : 1451974922
Total Pages : 26 pages
Book Rating : 4.28/5 ( download)

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Download or read book Pros and Cons of Currency Board Arrangements in the Lead-Up to EU Accession and Participation in the Euro Zone written by Ms.Anne Marie Gulde and published by International Monetary Fund. This book was released on 2000-02-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Historically, countries with currency board arrangements (CBAs) have experienced lower inflation and higher growth than those with other regimes. The experiences of three candidates for EU membership with CBAs (Estonia, Lithuania, and Bulgaria) have also been generally favorable. Can CBAs serve these transition countries well all the way up to the adoption of the euro? After considering the pros and cons, this paper provides an affirmative answer, but notes that to preserve the viability of their CBAs throughout the process, these countries need to maintain strict policy discipline and be prepared to deal with large capital inflows and asymmetric shocks.

Author : Mr.Harald Anderson
Publisher : International Monetary Fund
ISBN 13 : 1451873581
Total Pages : 20 pages
Book Rating : 4.80/5 ( download)

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Download or read book Revised System for the Classification of Exchange Rate Arrangements written by Mr.Harald Anderson and published by International Monetary Fund. This book was released on 2009-09-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since 1998, the staff of the International Monetary Fund has published a classification of countries' de facto exchange rate arrangements. Experience in operating this classification system has highlighted a need for changes. The present paper provides information on revisions to the system in early 2009. The changes are expected to allow for greater consistency and objectivity of classifications across countries, expedite the classification process, conserve resources, and improve transparency.

Author : Mr.Atish R. Ghosh
Publisher : International Monetary Fund
ISBN 13 : 1451927959
Total Pages : 23 pages
Book Rating : 4.55/5 ( download)

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Download or read book Currency Boards written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 1998-01-01 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growing integration of world capital markets has made it fashionable to argue that only extreme exchange rate regimes are sustainable. Short of adopting a common currency, currency board arrangements represent the most extreme form of exchange rate peg. This paper compares the macroeconomic performance of countries with currency boards to those with other forms of pegged exchange rate regime. Currency boards are indeed associated with better inflation performance, even allowing for potential endogeneity of the choice of regime. Perhaps more surprisingly, this better inflation performance is accompanied by higher output growth.

Author : Julius Horváth
Publisher : Nova Publishers
ISBN 13 : 9781600212260
Total Pages : 130 pages
Book Rating : 4.63/5 ( download)

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Download or read book International Currency Arrangements and Policies written by Julius Horváth and published by Nova Publishers. This book was released on 2006 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book deals with exchange rate arrangements and exchange rate policies. Chapter 2 classifies exchange rates into flexible, intermediate and rigid arrangements. The book is subdivided into an arrangement of free float, managed float, pegged but adjustable, target zone, crawling peg, hard peg, currency board, dollarisation, and monetary union. This chapter also discusses hypothesis of vanishing intermediate exchange rate arrangements as well as it deals with differentiation between de jure, and de facto exchange rate arrangements. Chapter 3 deals with the issue of choosing an appropriate exchange rate arrangement. The book briefly characterises basic approaches of how to choose an exchange rate regime. Furthermore, the book reviews considerations stemming from the optimum currency area literature. Chapter 4 deals with problems of exchange rate, which were encountered by the most developed transition countries. After discussing the initial stabilisation problems of the early 1990s, it provides a general overview of the macroeconomic situation and exchange rates arrangements in these countries in the period 1990-2004. Also the book discusses issues connected with the future introduction of the euro into these countries. Chapter 5 provides the reader with two case studies. First, a discussion of the Czech experience in the transition period till the crisis in May 1997 is presented. Second, a discussion of the Hungarian experience concerning banking and exchange rate policy in the 1990s till the early years of this century. Finally, Chapter 6 discusses different historical periods from the viewpoint of currency arrangements.

Author : Adam Bennett
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 38 pages
Book Rating : 4.34/5 ( download)

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Download or read book Currency Boards written by Adam Bennett and published by International Monetary Fund. This book was released on 1994-09 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses some of the issues that concern the operation of currency boards, by comparison to conventional exchange rate pegs, and looks at the experiences of three examples of this type of arrangement: Argentina (from 1991), Hong Kong (from 1983) and Estonia (from 1992). In all three cases, the implementation of currency boards or equivalent arrangements played a significant role in their successful stabilization programs. Currency boards derive their strength from the fact that they severely constrain the policy maker’s room for manoeuvre, by comparison to conventional pegs. They generally require an even stricter and less forgiving attitude to bank failure, wage and price rigidities and other disturbances than do exchange rate pegs in general. This is a Paper on Policy Analysis and Assessment and the author(s) would welcome any comments on the present text. Citations should refer to a Paper on Policy Analysis and Assessment of the international Monetary Fund mentioning the author(s) and the date of issuance. The views expressed are those of the author(s) and do not necessarily represent those of the Fund.

Author : Lubomira Anastassova
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.17/5 ( download)

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Download or read book Institutional Arrangements of Currency Boards - Comparative Macroeconomic Analysis written by Lubomira Anastassova and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is concentrated on the comparative macroeconomic analysis of the differences stemming from the extent to which the institutional framework of the currency board arrangement is implemented in the legal and regulatory systems in the different countries. The main objective of taking into consideration and examining the currency board institutional arrangements is to distinguish between the impact that currency board countries and countries with pegged exchange rate have on different macroeconomic indicators. During the analysis of these two extreme representatives of the fixed exchange rate mechanism, a third group of countries naturally emerges, which consists of countries acting like currency boards but without official, legal implementation of this arrangement. Once the distinction among all 22 countries taken into consideration had been made, the main scope of the analysis concentrates on the econometric estimation of the currency boards' effects over inflation, nominal and real interest rates and economic growth in countries under currency board and all other pegged exchange rate economies. The main hypothesis to be tested is whether the implementation of currency board arrangement results in lower inflation, lower nominal and real interest rates and better economic growth. In the course of carrying out a thorough empirical research, the hypothesis turns out to be true as the currency board countries exhibit almost 3% lower annual inflation differential when putting them against the other pegged exchange rate systems, and 1% point advantage over the countries similar to currency boards. On average, countries with currency boards showed higher economic growth, fact that can be even surprising taking into consideration the inabilities of the monetary authorities to intervene heavily on the market and neutralise the negative effects of various external shocks.

Author : Patrick A. Imam
Publisher : International Monetary Fund
ISBN 13 : 1451962002
Total Pages : 48 pages
Book Rating : 4.00/5 ( download)

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Download or read book Exchange Rate Choices of Microstates written by Patrick A. Imam and published by International Monetary Fund. This book was released on 2010-01-01 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we first explain why most microstates (countries with less than 2 million inhabitants) have gained independence only in the last 30 years. Despite the higher costs and risks microstates face, their ability to better accommodate local preferences combined with a more integrated world economy probably explains why the benefits of independence have risen. We explain why microstates at independence have chosen either dollarization, currency board arrangements, or fixed exchange rates rather than more flexible forms of exchange rate systems. We then, using the Geweke-Hajvassiliou-Keane multivariate normal simulator, model empirically the determinants of each of the different fixed exchange rate regimes in microstates and analyze the policy implications.