The Efficiency of the Currency Board Arrangement
The currency board arrangement has a relatively long history and it originated in the British colonies. In the period after the World War II, the interest in this arrangement died down, but it was revived with the initiation of the transition process in Eastern Europe, when the number of countries in this arrangement increased. The currency board arrangement has an influence on fast disinflation, but there is a dilemma about its performance in relatively stable conditions. The purpose of this paper is to make the comparison of selected performance (inflation and the current account deficit) of countries under the currency board arrangement with countries using other exchange rate arrangements, relying on the example of European economies in transition. This paper confirms assumptions of the theory that countries under the floating exchange rate arrangement have the lowest current account deficits (measured as a percentage of GDP), while the countries under the currency board arrangement have significantly higher deficits. Contrary to expectations, it turned out that the rate of inflation is lower in countries under the floating exchange rate arrangement when compared to other countries under the currency board arrangement, which indicates a lower efficiency of this arrangement in a stable environment.
Volume (Year): 2 (2013)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Phone: +382 20 403 136
Fax: +382 20 664 029
Web page: http://www.cbcg.me/eng/index.php?bl=journal
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey B Miller, 2001. "The Bulgarian Currency Board," Comparative Economic Studies, Palgrave Macmillan, vol. 43(1), pages 53-74, April.
When requesting a correction, please mention this item's handle: RePEc:cbk:journl:v:2:y:2013:i:1:p:157-176. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.