This paper discusses some of the issues that concern the operation of currency boards, by comparison to conventional exchange rate pegs, and looks at the experiences of three examples of this type of arrangement: Argentina (from 1991), Hong Kong (from 1983) and Estonia (from 1992). In all three...

This paper describes the operation of the Estonian currency board arrangement that has pegged the Estonian kroon to the deutsche mark since June 20, 1992, when Estonia left the ruble zone and introduced its own currency. The paper describes the institutional arrangements that were chosen for...

Interest rate policy in the newly reforming Central and Eastern European countries has generally been geared toward establishing positive real interest rates and defending the exchange rate. The principal instrument for this task has been administrative increases in controlled interest rates....

The accelerator model of investment in its empirical formulation dominates nearly all other models of investment behavior throughout the world. This paper examines this model in the context of French data and contends that the empirical superiority of the model is spurious, being largely related...

This paper utilizes recently published French data on the financial wealth of the private sector to test for evidence of wealth effects in IS and LM functions in France. The analysis suggests that wealth effects are indeed in evidence in expenditure functions, provided this is considered with a...