(Russian Currency and Finance: A Currency Board Approach to Reform)

Hanke, Steve H.; Jonung, Lars; Schuler, Kurt

doi:10.2139/ssrn.2402875

Cited by 33 publications

(16 citation statements)

References 69 publications

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“…This form of a rigid peg regime has been proposed by Robert Mundell (1997) for Mexico and other countries, Robert Barro (1998Barro ( , 1999 for Malaysia and Brazil, and Rudiger Dornbusch (2000) for Brazil and Mexico. Steve Hanke and colleagues have advocated establishing this regime in Russia, Indonesia, and other countries (Hanke et al, 1993;Hanke and Schuler, 1994). Milton Friedman (1968) supports unified currency regimes, which include currency boards, the adoption of another country's currency, and the operation of a single currency within a monetary union or country.…”

Section: Discussionmentioning

confidence: 99%

Discipline, Signaling, and Currency Boards

Oliva¹,

Rivera‐Batiz

2001

Rev International Economics

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The paper models the choice between currency boards (CBs) and adjustable pegs (or managed floating). Countries adopting CBs have grown faster and inflated less on average than countries adopting other regimes.The explanation hinges on key features of CBs: policy discipline and inflation credibility.The authors find separating equilibria in which a weak government chooses a CB as a discipline device while a tough government chooses a standard peg for its policy flexibility. Paradoxically, the weak government can then outperform the tough government on average. In simulations performed, CBs welfare can exceed peg welfare even when unemployment persistence is strong.

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Section: Discussionmentioning

confidence: 99%

Discipline, Signaling, and Currency Boards

Oliva¹,

Rivera‐Batiz

2001

Rev International Economics

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“…A Currency Board is a system under which monetary emission is strictly linked to currency reserves held by an independent agency. Such a proposal, echoing some made for Indonesia earlier, 15 was not new for Russia (Hanke et al, 1993). Such a system allows for strict proportionality between the domestic currency and its foreign counterpart.…”

Section: Rejecting the Fallacy Of A Currency Boardmentioning

confidence: 98%

Russia's Crash of August 1998: Diagnosis and Prescription

Sapir¹

1999

Post-Soviet Affairs

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A distinguished French specialist on the Soviet and Russian economies analyzes the financial, political, and institutional crises facing Russia in 1999. Discussion of the vulnerabilities of the economy prior to the crash of 1998 is followed by a suggested program for coping with the currency, banking, and public finance crises, and for building market institutions. Comparisons are drawn with the post-war experiences of France, Italy, and Japan. The article includes an extended critique of the assumptions underlying alternative interpretations and prescriptions.

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“…An outflow of capital, as a result of non-confidence in the system, would lead to a contraction of the money supply, push up the interest rates, and induce a counter-flow. Since the whole event would take place automatically and speedily, the exchange rate can be fixed without government intervention (Hanke et al, 1993).…”

Section: The Link and The Classical Currency Boardmentioning

confidence: 99%

The Case for Adopting the Convertible Reserves System in Hong Kong

Tsang

1998

Pacific Economic Review

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The East Asian currency crisis spread to Hong Kong in October 1997, touching off worldwide repercussions. Weaknesses were revealed in the operational mechanism of Hong Kong's linked exchange rate system (the link). This paper casts the link as a peculiar currency board system in the proper historical and comparative contexts. After examining the conflict between the classical currency board (which relies on the two "automatic" stabilizers of specieflow and cash arbitrage) and modern financial developments, it is pointed out that Hong Kong should move forward to the convertible reserves system of Argentina, Estonia and Lithuania (the AEL model), and adopt its cashless electronic arbitrage arrangement to defend the link. Moreover, it is necessary to balance the need for short-term stability and the consideration of long-term flexibility. Any measure that increases the ultimate exit cost from the link must be assessed carefully.

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(Russian Currency and Finance: A Currency Board Approach to Reform)

Cited by 33 publications

References 69 publications

Discipline, Signaling, and Currency Boards

Discipline, Signaling, and Currency Boards

Russia's Crash of August 1998: Diagnosis and Prescription

The Case for Adopting the Convertible Reserves System in Hong Kong

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