Currency Boards

Hanke, Steve H.

doi:10.1177/0002716202579001007

Cited by 21 publications

(16 citation statements)

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“…12 (Hanke, 2002) However, these systems have not been trouble-free. Argentina's convertibility system proved to be crisis-prone and was finally abandoned in January 2002.…”

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confidence: 99%

“…In heaping praise on the performance of these new systems, the IMF's own reports document that inflation and interest rates fell dramatically, real growth rates switched from negative to positive, fiscal consolidation ensued and banking systems strengthened after the introduction of currency board-like systems. (Hanke, 2002) The Washington consensus clings to its dogmatic arguments to obstruct the introduction of currency boards. After all, the preconditions can only be met by a relatively small group of countries.…”

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confidence: 99%

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On dollarization and currency boards: Error and deception

Hanke

2002

The Journal of Policy Reform

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A diagnosis of the laws and balance sheets of the monetary authorities in Argentina, Bosnia, Bulgaria, Estonia, Hong Kong and Lithuania is presented. With the exception of Bosnia, all employ active monetary policies and engage in sterilization. Accordingly, they are not currency boards. The methods used to dismantle the Argentine system in 2001, prior to its eventual abandonment, are presented. An evaluation of the Hong Kong system (1997)(1998) suggests that its so-called currency board was not a party to counter-speculation in the stock market. Evidence is presented to show how deception was employed by the US and the IMF during the Indonesian currency board debate (1998) as a means to engineer a political regime change.

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“…12 (Hanke, 2002) However, these systems have not been trouble-free. Argentina's convertibility system proved to be crisis-prone and was finally abandoned in January 2002.…”

mentioning

confidence: 99%

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confidence: 99%

On dollarization and currency boards: Error and deception

Hanke

2002

The Journal of Policy Reform

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“…They are inconsistent with empirical evidence and well-established propositions of elementary economics. The empirical evidence supporting this conclusion has been compiled and is readily available (Schuler, 1996;Hanke, 2002a), and so is a concise critique of the analytical case against dollarization. (Dornbusch, 2001) A critical evaluation of the academic literature is not possible here.…”

Section: Dollarization's Detractorsmentioning

confidence: 98%

“…(Barro, 2000) Incidentally, money in Hong Kong was (and is) governed by a rule-based, though not fully orthodox, currency board regime, one that is related to Ecuador's "dollarized" regime. (Hanke, 2002a) To further clarify and operationalize the general idea of the rule of law, it is helpful to itemize the principles that can be derived from the idea, as Joseph Raz has done (1979, pp. 7-12):…”

Section: Introductionmentioning

confidence: 99%

Money and the rule of law in ecuador

Hanke

2003

The Journal of Policy Reform

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The rule of law is defined and its implications in the monetary sphere are elaborated. When national monetary arrangements fail to comport with the rule of law, "dollarization" is desirable. That policy provides for more stable money and expectations about its future value. The salutary effects of Ecuador's "dollarization" program of 2000 are reviewed. In addition, a manifesto for economic reform in Ecuador is presented. Its elements are: financial integration, fiscal transparency and control, tax simplification and reform, supermajority voting, deregulation, and privatization.

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“…A currency board arrangement was adopted by Hong Kong to stabilize its currency in 1983 and by Argentina in 1991 to tame its runaway hyperinflation (about 5000% in 1989 and 1300% in 1990). It has also been adopted by emerging economies like Estonia, Lithuania and Bulgaria, and is under consideration by others (see Hanke (2002a)). The recent dollarization programs adopted by Panama, El Salvador and Ecuador are equivalent to (except for seigniorage) a perfectly run currency board.…”

Section: Introductionmentioning

confidence: 99%

A Theory of Currency Board with Irrevocable Commitments^*

Chan

Chen

2003

Int Rev Finance

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Currency boards are subject to runs if the foreign currency reserve is insufficient to back the convertible money supply. We construct a simple model and show how pre-specified optimal reserve commitments can avert currency board runs. If there exists asymmetric information on the government's resolve, the government can also use commitments as a costly signal to induce a separating equilibrium. The model can be adapted to analyze other hard-fixed exchange rate systems such as dollarizations and monetary unions. We illustrate the implications of our model in terms of the recent success in Hong Kong and possible remedies for Argentina.

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Currency Boards

Cited by 21 publications

References 0 publications

On dollarization and currency boards: Error and deception

On dollarization and currency boards: Error and deception

Money and the rule of law in ecuador

A Theory of Currency Board with Irrevocable Commitments^*

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Currency Boards

Cited by 21 publications

References 0 publications

On dollarization and currency boards: Error and deception

On dollarization and currency boards: Error and deception

Money and the rule of law in ecuador

A Theory of Currency Board with Irrevocable Commitments*

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Product

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A Theory of Currency Board with Irrevocable Commitments^*