Open AccessEstonian currency board and economic performance
Author(s) -
Mart Sõrg
Publication year - 1998
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v1i3.2557
Subject(s) - currency board , estonian , currency , business , monetary economics , economics , monetary base , function (biology) , international economics , monetary policy , linguistics , philosophy , evolutionary biology , biology
The sole function of an orthodox (or "pure") currency board was to issue paper money fully backed by foreign assets, for which it was exchangeable at a fixed rate. Present-day currency board arrangements, however, are usually coupled with certain instruments of monetary policy too, albeit less extensive than in the case of conventional central banks. This paper sketches the establishment of the Estonian currency board in 1992, and its subsequent impact on the economic reform and performance in Estonia.