TY  - GEN
T1  - Currency Board Versus Central Bank in a Currency Crisis
A1  - Ho, Kenneth Tat Meng
LA  - English
LA  - English
YR  - 1998
UL  - http://discoverylib.upm.edu.my/discovery/Record/oai:psasir.upm.edu.my:9255
AB  - From June 1997 till presently had been a period of economic turmoil for many
parts of the Asian region. There has been experiences of economic overheating, inflation, deficit balance of payments, rising interest rate s coupled with the
downward spiral of the stock market s and currency devaluations.
This has brought about numerous debates on the causes and remedies of this
crisis. Among them are the usefulness of the currency board regime in regulating
the exchange rate s of the countries involved. This is an alternative system to the
present regime of central bank s in managing the countries' money supply.
The currency board basically is a monetary regime whereby the exchange rate of
the country as fixed with a chosen anchor currency whereby all its money supply
must be 100% backed by its foreign reserves.
The central bank system employs the floating exchange rate which has been
unsuccessful in warding off speculations on the currency. Further many other
disadvantages will be discussed in this thesis.
This thesis discuss the comparative characteristics between the currency board
and the central bank monetary regime in all its advantages and disadvantages.
An attempt i s made to define the currency board and the central bank and the
many versions associated with them. (Le., classical, modern and AEL-Argentina,
Lithuania, Estonia -model)
A closely related concept to the currency board, namely dollarization is also
discussed.
ER  -