A Proposal for a Currency Board in a Democratic Burma
By Sean Turnell*
Abstract
This paper argues that a currency board will provide a newly-democratic Burma with the stable monetary system it will need after decades of currency debasement under military rule. An old idea that has successfully re-emerged in recent years in a number of countries, currency boards are relatively simple and transparent institutions that can provide stability, predictability and credibility to an emerging economy's monetary institutions. Currency boards impose certain constraints on the ability of governments to conduct discretionary economic policies. The advantages they bring in establishing confidence in the currency, however, outweighs such considerations in countries whose greater need is the establishment of the sound foundations of a market economy.
The 'Currency Board' arrangement is a plan desperately needed in a country rebuilding itself, and where there had been a widespread......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 6969
Approximate Pages: 27 (260 words per double-spaced page) |