Buy custom A Proposal For A Currency Board In A Democratic Burma
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| Topic: |
Business
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| Number of pages / Number of words: |
25 / 6967 |
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Relatively simple structures, currency boards can be used in the place of a central bank. Unlike a central bank though, their purpose is narrowly and simply defined to that of being the issuers of currency. What further distinguishes currency boards though, is that they can only issue the domestic currency to the extent that it is backed by a foreign 'anchor' currency, to which the domestic currency is freely convertible at an exchange rate fixed by law...
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What further distinguishes currency boards though, is that they can only issue the domestic currency to the extent that it is backed by a foreign 'anchor' currency, to which the domestic currency is freely convertible at an exchange rate fixed by law. In a pure currency board system the stability of the domestic currency becomes that of the anchor currency...
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General points of the essay
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