ECONOMIC EFFICIENCY OF CURRENCY BOARDS IN THE CONTEXT OF MONETARY INTEGRATION
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 6, Issue 62
Abstract
The article is devoted to the research of peculiarities of the currency board arrangement within the monetary integration. A currency board is the exchange rate arrangement that is based on a separate national currency that is officially pegged to foreign anchor. During the last two centuries, there were different ways of currency boards organizing. There are a number of criteria for the so-called “orthodox currency board”, among them: anchor currency reserves should be sufficient to convert the total amount of all banknotes and coins in circulation (typically 105–110% of the monetary base); absolute and unrestricted convertibility of national and anchor currency at a fixed exchange rate in the absence of restrictions on current account or capital account operations; does not conduct active monetary policy and does not provide loans to government, national companies or banks, currency board does not perform forward exchange transactions; currency board does not carry out manipulations with the discount rate. Modern currency boards are trying to add the element of flexibility to the traditional benefits of monetary stability, although this is rather a difficult task. Therefore, they faced the problem of revaluation of the national currency, deficit of the balance of payments, accumulation of excessive external shortterm debt, lack of confidence in the stability of arrangement, etc. The analysis of the efficiency of a currency board is conducted on the basis of indicators of macroeconomic stability and development: money supply growth, real interest rate, GDP growth, GDP growth per capita, the growth of exports. It is found that currency board is mainly accompanied by lower inflation and money supply growth with real interest rates, but less intensive GDP growth and exports.
Authors and Affiliations
M. V. Lyzun
Keywords
Related Articles
- EP ID EP539411
- DOI -
- Views 159
- Downloads 0
SOCIO-ECONOMIC IMPACT OF INTERNATIONAL MIGRATION ON INDICATORS OF HUMAN DEVELOPMENT AND POVERTY IN THE WORLD
The regional integration and the acceleration of world economy globalization affect the growth and deepening of the relationship between countries and regions. The reasons for this situation are the international money f...
INFORMATION TECHNOLOGIES IN THE ACTIVITIES OF THE STATE CUSTOMS SERVICE OF UKRAINE
This article deals with raising the efficiency of the implementation of state customs affairs efficiency as a result of e-government application in customs bodies of Ukraine. The main directions of development of informa...
INCREASE IN EFFICIENCY OF USE OF PRODUCTION STOCKS OF THE ROAD ENTERPRISE
The article reviewed theoretical aspects of the characteristics and classification of production resources, as well as the role of inventories in the system of economic activity of the enterprise. Considered the main dir...
FLUSH OF OFFSHORE ZONES OF TRANSITIVE ECONOMY
Research Methodology. By means of comparative analysis and deductive method are analyzed and discussed various concepts relative concept offshore, shadow activity Shadow Economy. Analyzed and investigated to affect offsh...
ECONOMETRIC MODELING OF REGIONAL LABOR MARKETS OF UKRAINE
The labor market is one of the main elements of the market economy and the fundamental subject of research on the labor economy. The modern labor market in Ukraine is characterized by a significant level of tension due t...