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An Analysis of the Performance of Currency Boards

Author

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  • Naness, Rachmiel Joseph

    (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)

Abstract

Most countries that have ever had currency boards no longer do. This paper evaluates the economic performance of countries during currency board and non-currency board periods. Compared to the monetary systems that preceded or succeeded them (typically, central banking), currency board systems generally had lower inflation, exchange rates less prone to depreciation, fewer financial crises, fewer years of government budget deficits, and slightly higher growth of GDP per person. Supporting data are available in an accompanying spreadsheet workbook.

Suggested Citation

  • Naness, Rachmiel Joseph, 2017. "An Analysis of the Performance of Currency Boards," Studies in Applied Economics 70, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    • Handle: RePEc:ris:jhisae:0070
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    References listed on IDEAS

    as
    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    2. Holger C. Wolf & Atish R. Ghosh & Helge Berger & Anne-Marie Gulde, 2008. "Currency Boards in Retrospect and Prospect," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232650, December.
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    More about this item

    Keywords

    currency boards; growth; inflation; foreign reserves; fiscal deficits; convertibility exchange controls; financial crises; exchange rate depreciation;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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