IDEAS home Printed from https://ideas.repec.org/a/lus/zwipol/v47y1998i1p3-19n2.html
   My bibliography  Save this article

Einige Anmerkungen zur Wahl der Reservewährung eines Currency Boards

Author

Listed:
  • Freytag Andreas

    (Institut für Wirtschaftspolitik an der Universität zu Köln Pohligstraße 1)

Abstract

Currency Boards generally are likely to help with introducing credibility and stability if they are organised in a manner to minimise risks. One important aspect is the choice of an appropriate reserve currency. There are two conditions for a currency to be an adequate reserve medium: it should be a hard currency and it should shelter the pegged country from real shocks inside and outside the currency area. A shelter from real shocks can be provided for, if three criteria are met: first, other countries which firms compete with firms from the country that introduces the board should also be pegged to the reserve currency. Second, the structure of production should differ significantly from the reserve country. Third, a high share of foreign trade should take place with the reserve country. Empirical evidence of two countries that recently introduced currency boards, namely Estonia and Lithuania, indicates the relevance of this analysis for the choice of a reserve currency.

Suggested Citation

  • Freytag Andreas, 1998. "Einige Anmerkungen zur Wahl der Reservewährung eines Currency Boards," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 47(1), pages 3-19, April.
  • Handle: RePEc:lus:zwipol:v:47:y:1998:i:1:p:3-19:n:2
    DOI: 10.1515/zfwp-1998-0102
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/zfwp-1998-0102
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/zfwp-1998-0102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maute, Jutta, 2002. "Stabilization via currency board," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 18/2002, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    2. Andreas Freytag, 2005. "The credibility of monetary reform – New evidence," Public Choice, Springer, vol. 124(3), pages 391-409, September.
    3. Wessolly, Robert & Wienert, Helmut, 2002. "Die argentinische Währungskrise," Beiträge der Hochschule Pforzheim 106, Pforzheim University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lus:zwipol:v:47:y:1998:i:1:p:3-19:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.