During 1991, Argentina's monetary law had a currency board. Explain and give an example

What will be an ideal response?

The currency board is monetary base backed entirely by foreign currency and the central bank therefore held no domestic assets. An example of currency board is 100% foreign exchange backing for monetary base.

Economics

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What will be an ideal response?

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If the market price faced by a perfectly competitive firm increases, in the short run how does the firm respond?

What will be an ideal response?

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