An investigation into the credibility of currency board arrangements in Bosnia and Herzegovina and Bulgaria

Currency Board Arrangements (CBA) and the credibility of monetary authorities * Survey questions on individual expectations and attitudes are used * We report a positive effect of CBA on the credibility of monetary authorities * This positive effect is greater the worse the expectations about economic prospects This positive effect is greater the lower the trust in government Currency Boards are usually argued to increase the credibility of the monetary authority, although this effect ultimately depends on the economic, political and institutional circumstances in the specific country. Few stu... Mehr ...