...This chapter examines whether lower inflation under currency boards compared to other regimes is associated with the currency board regime itself or the result of other determinants of inflation or possible simultaneity bias. The evidence suggests that the relationship between currency boards...

...This chapter summarizes the main themes covered in this book and presents some concluding thoughts. This book has provided a comprehensive, balanced look at currency board regimes, complementing cross-regime econometric analysis with more detailed case studies. The evidence indicates that countries...

...This chapter examines the history of currency boards to provide context for a discussion on modern currency boards and determine if any lessons can be learnt from past experiences. It compares early and modern boards and then looks at the specific case of the creation of the West African Currency...

...This chapter reviews evidence on the benefits and costs of currency boards. It first considers the behavior of inflation, money growth, and interest rates under various exchange rate regimes. It then turns to the “real” side of the economy—exports, investment, and output growth. Next it examines...

...This chapter describes modern currency boards in Estonia, Lithuania, Bulgaria, and Bosnia and Herzegovina. These boards were introduced in the 1990s as part of macroeconomic stabilization efforts. The discussions focus on their motivation, performance, and prospects. Argentina Economic...

...This chapter looks at Estonia’s adoption of a currency board arrangement in 1992. The discussions cover the board’s structure, monetary and banking policies, adjustments to the way of the European Monetary Union (EMU), and the board’s impact on macroeconomic performance. Berger H Credibility De...

...This chapter evaluates Bulgaria’s use of a currency board arrangement in 1997. The chapter covers the board’s structure and operation environment, monetary and banking policies, the board’s impact on macroeconomic performance, and outlook and adjustment on the way to the European Monetary Union...

...This chapter considers the possibility that the strong inflation and growth performance of euro currency boards may be due to outside factors common to all the transition economies of central Europe, with the boards playing only a minor role. It does so by placing the experience of the euro boards...

...This chapter examines Lithuania’s adoption of a currency board arrangement on April 1, 1994. The discussions looks at the board’s structure, monetary and banking policies, the exit debate and preparation for the European Monetary Union (EMU), and the board’s impact on macroeconomic performance...

...This chapter looks at the establishment of a currency board in Bosnia and Herzegovina in 1997. The analysis cover the board’s structure, monetary and banking policies, the board’s impact on macroeconomic performance, and Bosnia and Herzegovina’ economic outlook. Bosnia and Herzegovina Coats W...

...Currency boards, more so than other exchange rate regimes, have come in and out of fashion. Defined by a fixed exchange rate with full convertibility, central bank liabilities backed with foreign exchange reserves, and a high cost of exiting the regime, they were common in colonial times—until most...