Feuerstein, Switgard; Grimm, Oliver - Center for European, Governance and Economic … - 2004
The paper compares the credibility of currency boards and (standard) pegs. Abandoning a currency board requires a time … shocks makes the abolition more likely. Currency boards are more credible than standard pegs if the time inconsistency … problem dominates. In contrast, standard pegs, that can be left at short notice, are more credible if exogenous shocks are …