ドミンゲスの中間試験第二問。 (2) The fictional country of Freespendia (浪費大好き国) has had a recent history of hyperinflation, frequent devaluations, and large government budget deficits. In order to improve its international reputation and encourage foreign capital inflows, the government of Freespendia is thinking about switching to a currency board system.
(a) How is money created in a currency board system? (b) Why are currency boards seen as protection against devaluation? (c) What problems is Freespendia likely to face with a currency board system? (d) Under what circumstances would you recommend that Freespendia move to a currency board system?