The quest for sound money: currency boards to the rescue

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Norman S. Fieleke;
(1992)
  • Subject: Money ; Currency boards ; Foreign exchange - Law and legislation

Some countries with high inflation have adopted another nation’s more stable currency: Panama uses the U.S. dollar, gaining price stability and easier trade with its primary partner. But this arrangement grants an interest-free loan to the government whose currency is u... View more
  • References (9)

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    2 This estimate is based on conversation with Eudoro Jo~n Escavel, Executive Director, National Banking Commission, Republic of Panama, and on Fernandez (1986, pp. 50-51).

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