Nations adopting currency boards have tended to experience
A) improved GDP growth
B) smaller budget deficits
C) lower average inflation rates
D) smaller swings in inflation rates over time
E) all of the above

Question

Quizplus · Accepted Answer

Nations adopting currency boards have experienced all of the above mentioned benefits. Adopting a currency board system provides a framework for monetary stability, which leads to improved GDP growth, smaller budget deficits, lower average inflation rates, and smaller swings in inflation rates over time.

Nations Adopting Currency Boards Have Tended to Experience