Currency Boards for Eastern Europe
Year: 2013
Type: preprint
Abstract: As long as Eastern Europe and the USSR have unsound currencies, they will be unable to transform themselves into market economies. A sound, convertible currency allows people to carry out decentralized planning, which is more efficient than central planning. In nations with so-called internally convertible currencies, all that is usually required to buy goods domestically is to have currency to pay a domestic seller. Internal convertibility implies that it is not necessary to obtain authorization from any central planner to buy or sell goods that are available inside the country. The exchange of goods is much more extensive, rapid, and efficient where internal convertibility exists, as in the United States, Germany, and Poland, than where it does not, as in Albania and the USSR.
Source: SSRN Electronic Journal
Authors: Steve H. Hanke, Kurt Schuler
Institution: Johns Hopkins University
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2280550660