by Holger C. Wolf, Atish R. Ghosh, Helge Berger, Anne-Marie Gulde
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, currency boards were common in colonial times—until most were cast off as countries gained independence after World War II. In the 1990s, currency boards enjoyed a...
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