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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Michael who wrote (14281)	2/18/1998 3:03:00 PM
From: Thomas F. O'Connor	Read Replies (1) \| Respond to of 18056

Michael, As you noticed in my original posting I mentioned the possibility of political corruption destroying the currency board concept. However, if the degree of political corruption is minimal, a currency board will work, but as I stated, the IMF plan will never work because it will not stabilize the currency. In fact, stabilization of the currency is not even mentoned in their plan! Therefore, of course, I am for the currency board plan most enthusiastically, because the most important point is to stabilize the currency. A currency board is transparent, meaning if the politicians cheat, it will immediately be reflected in higher interest rates and a fall in the currency value.. A currency board has no central bank. With the IMF plan, the central bank can surreptitously print more money, and the size of the problem is not recognized until much later. That has been the problem in the past and the IMF plan continues on the same course As you know much better than I with your experience in the area, it is the average person who suffers the most from a depreciating currency. Therefore, it cannot be overemphazied, the the value of the currency must be stabilized If not done, nothing else matters. What cancellation has there been? Has the idea of the currency board been cancelled? Couldn't find this on ay of my Net sources. The currency boards would have a very important impact on the dollar and gold, especially if it became an important way of solving the Southeast Asia currency problems for several countries, but I want to wait to discuss that until the present idea of the currency board is resolved one way or another. Best