Political stability and credibility of currency board
Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Žurnalų straipsniai / Journal articles
Language:
Anglų kalba / English
Title:
Political stability and credibility of currency board
In the Journal:
Political stability and credibility of currency board, 2023, 137, 10291
Subject Category:
Summary / Abstract:
ENDo currency boards offer protection against self-fulling speculative attacks? This paper examines the credibility of currency boards of Argentina, Bulgaria, Estonia, Hong Kong, Latvia, and Lithuania. We employ a Bayesian Markov regime-switching model to analyze the role of economic fundamentals and self-fulfilling expectations in accounting for the credibility of the currency board. We find that the credibility of our sample currency boards is all subject to self-fulfilling runs. We also find that the political stability of adopting economies relates to the credibility of their currency boards and explains a few self-fulfilling runs of their currency boards. Keywords: fixed exchange rate; regime switching; political economy.
DOI:
10.1016/j.jimonfin.2023.102911
ISSN:
0261-5606
Subject:
Related Publications:
How to reduce inflation: an independent central bank or a currency board? The experience of the Baltic countries. Emerging markets review 2001, 2, 218-243.
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https://www.lituanistika.lt/content/108916
Updated:
2026-02-25 13:42:24
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