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  • Rainer Schweickert
Conference paper
Part of the Contributions to Economics book series (CE)

Abstract

Since its implementation in Argentina and Estonia, the currency board idea celebrates a revival which comes quite as a surprise. With the exceptions of Hongkong and Singapore, all currency boards in former colonies were substituted by central banks when colonial times ended (see Schwartz (1993)). Hence, the abolition of currency boards in the past marked the beginning of an institutional reform. It is highly interesting that the recent introduction of currency boards were exactly motivated by full-scale institutional reforms starting either from scratch (transformation countries: Estonia) or chaos (developing countries: Argentina). Have the former colonies made a mistake when abolishing currency boards? What is the role of a currency board in institutional reforms? Fuhrmann touched this issues in his introduction but rather as a motivation for his interesting approach to formalize the currency board idea in terms of exchange rate policy.

Keywords

Exchange Rate Central Bank Inflation Rate Real Exchange Rate Exchange Rate Regime 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Physica-Verlag Heidelberg 1998

Authors and Affiliations

  • Rainer Schweickert
    • 1
  1. 1.Institute of World EconomicsKielGermany

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