“When put into effect, currency boards have ALWAYS worked” - Steve Forbes
“No lender of last resort is dangerous.”
Empirical evidence shows banking systems under currency boards are more stable, not less, because banks cannot rely on bailouts.
“Currency boards limit growth.”
Data contradicts this: stabilization and credibility boost investment and growth.
“They are too rigid.”
The rigidity is the feature — not a bug — and is precisely why they work.
“Argentina’s Currency Board Failed”
Argentina failed to follow orthodox rules on currency boards and therefore came under a speculative crisis. Had they had a true currency board their system would be alive and successful today.
