It is widely feared that, once prices are decontrolled in the formerly centrally–planned economies, households’ release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country’s fiscal, monetary, and labor market policies are...

This paper provides an analytic overview of independent currency authorities (ICAs), sometimes called currency boards. ICAs issue and redeem domestic currency against an exchange standard on demand and back such operations through a 100 percent marginal foreign reserve cover. They also impose...

It is widely feared that, once prices are decontrolled in the formerly centrally-planned economies, households` release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country`s fiscal, monetary, and labor market policies are destabilizing...