Fortunately the key insights about inflation or deflation are fairly intuitive and easy to understand. Stable prices—i.e., zero inflation—is best, fully anticipated inflation (or deflation) is second best, and inflation/deflation surprises are bad. 1,346 more words
Tags » Dollarization
Two key concerns dominate Central America’s banking sector this year – dollarization and consumer lending. The two themes are interlinked – given any significant erosion in capital base, the banking sector’s ability to support the demand for consumer loans may be compromised. 1,096 more words
Earlier this week I re-visited Iceland on the invitation of the Icelandic bank Islandsbanki. I had been invited to give a presentation on the topic of… 297 more words
As Scotland prepares to vote on independence on Sept. 18, the future of its currency has taken center stage.
For the moment, Scotland prints its own notes and uses the British pound, which is controlled by the Bank of England. 1,465 more words