Russian Currency and Finance - A Currency Board Approach to Reform (Electronic book text)

Extreme inflation is the biggest problem facing Russia today. It is causing economic collapse, which in turn has caused political chaos. Unless the Russian currency is stabilized, attempts at reform are futile, but whilst currency is under the control of the Central Bank of Russia this is unlikely to happen. This book presents a radical alternative - the currency board system, such as exists currently in Hong Kong. Under this system, the rouble would be linked to a stable foreign currency at a fixed exchange rate, providing a stable, fully convertible domestic currency for Russia. The system is well-tested and has been used successfully before in Russia. The book also explains in detail how to establish and operate a currency board.