Rostowski, J. (1992) A proposal on how to introduce a currency board based monetary system in the republic of Latvia. CEPDP (83). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
Full text not available from this repository.Abstract
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) |
|---|---|
| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 1992 J.Rostowski |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HG Finance |
| Date Deposited: | 20 Aug 2008 16:21 |
| Last Modified: | 15 Sep 2023 22:39 |
| URI: | http://eprints.lse.ac.uk/id/eprint/21046 |
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