It is commonly believed that borrowers cannot be anonymous in unsecured credit relations because anonymity heavily reduces the scope for punishment and therefore makes credit unfeasible except for very special circumstances. However, we demonstrate that credit is generally feasible even if...

In recent times, interest in currency boards has come back into vogue as a tool to stabilize the nominal exchange rate and accelerate the process of economic stabilization. The most important reasons for the renewed interest in currency boards must be found in the need to face the persistent...