Rostowski, J. (1992) A proposal on how to introduce a currency board based monetary system in the republic of Latvia. CEPDP, 83. Centre for Economic Performance, London School of Economics and Political Science, London, UK.Full text not available from this repository.
Latvia is considering adopting a convertible currency which would be highly backed and which would be administered by a currency board. The problem is that with a tiny proportion of national income generated by trade with convertible currency countries this would require a huge initial undervaluation of the new domestic currency (the Lat), which would be highly stagflationary. The introduction of a bi-paper standard, with the Lat as a fully backed second currency circulating in parallel with the rapidly inflating Latvian ruble, avoids these costs. The advantages of such a system for revolutionary banking sector reform are also described.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1992 J.Rostowski|
|Library of Congress subject classification:||H Social Sciences > HG Finance|
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
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