Hanke's writings on currency boards

Hanke's writings on currency boards examine systems where a country's currency is directly tied to a foreign currency, with the local currency fully backed by foreign reserves. This arrangement aims to stabilize the economy by maintaining fixed exchange rates and controlling inflation. Hanke argues that currency boards can foster monetary discipline, reduce currency risk, and promote economic stability, especially in countries with histories of inflation or financial instability. He emphasizes that, when properly implemented and credible, currency boards can serve as an effective alternative to central banking, encouraging sound fiscal policies and confidence among investors.