A Proven Solution for Lebanon’s Economic Crisis: A Currency Board

Ambika Kandasamy ()
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Ambika Kandasamy: The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

No 197, Studies in Applied Economics from The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

Abstract: Lebanon is currently facing a financial crisis marked by rising inflation rates and a black-market exchange rate that is significantly diverging day-by-day from the official exchange rate. In this paper, the author dives into Lebanon’s financial history and what actions undertaken by the government since the civil war have led to this crisis. After a thorough examination of the current economy, the author compares Lebanon’s present day financial crisis to the one faced by Bulgaria in the 1990s and concludes that the implementation of a currency board is a viable solution for restoring the strength of the Lebanese pound and ushering in financial stability.

Keywords: currency board; Lebanon; Bulgaria (search for similar items in EconPapers)
JEL-codes: E51 G01 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2021-11-13
New Economics Papers: this item is included in nep-ara, nep-his, nep-mac, nep-mon and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jhisae:0197

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