Wich currency is best for business in a small country?

Artikel

The optimal currency for a country is an important topic. While it is difficult to identify the best option overall, for all stakeholders and including political considerations, it is easier to answer the more limited question of the title: Which currency is best for business in a small country? Several kinds of currencies are discussed and three criteria that business companies are interested in are applied. Although there are opposing considerations, the best compromise for business in a small country seems to be a currency board with a fixed exchange rate that can be adapted in case of a crisis. A currency board is also the best protection against speculative attacks. The anchor currency should be that of the largest trading partner, especially if the trade with it is much larger than with all other countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Contemporary Economic and Business Issues ; ISSN: 1857-9108 ; Volume: 4 ; Year: 2017 ; Issue: 1 ; Pages: 55-64 ; Skopje: Ss. Cyril and Methodius University in Skopje, Faculty of Economics

Classification and Topics

• Classification: Wirtschaft ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Foreign Exchange ; Macroeconomic Issues of Monetary Unions ; Financial Crises ; Business Economics
• Subject: crisis ; currency ; currency union ; exchange rate ; risk

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dilger, Alexander
• Event: Veröffentlichung
• (who): Ss. Cyril and Methodius University in Skopje, Faculty of Economics
• (where): Skopje
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/193474
• Last update: 10.03.2025, 11:44 AM CET