Abstract
Currency boards are exchange rate arrangements in which the exchange rate is fixed to an anchor currency and central banks just buy and sell domestic currency at this exchange rate. We review the advantages and disadvantages of currency boards. While some of the alleged benefits of currency boards have diminished hand in hand with a reduction in inflation rates in most countries since the mid-1990s, currency boards may remain an attractive option for certain countries.
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© 2018 Macmillan Publishers Ltd.
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Sturzenegger, F. (2018). Currency Boards. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_102
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DOI: https://doi.org/10.1057/978-1-349-95189-5_102
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Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
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