As the new Russian state struggles with the transition to a market economy, the need for radical monetary reform becomes increasingly urgent. The choice of reform is crucial, for it will largely determine Russia's future economic performance. In order to break free of the lingering effects of Soviet central planning, the new Russian state needs a stable, convertible currency.
Steve H. Hanke, Lars Jonung and Kurt Schuler propose that Russia establishes a currency board which would issue a Russian currency fully convertible with international currency, backed 100 per cent by international bonds. The international community would aid in establishing the currency board by providing the initial reserves. Early supplies of this new Russian currency would be distributed free to Russian citizens. The authors give detailed explanations of how the currency board could be established and how it would work.
"All in all this is a worthwhile little book. The authors provide a great primer on currency boards and Russian financial problems. Best of all, they raise innumerable questions."
-"Journal of Economic Literature
"How does one install and ensure stable money in Russia? In my view, the only sure-fire way is to establish a currency board. This volume presents a sound blueprint for doing just that."
-Sir Alan Walters