Hyperinflation, Currency Board, and Bust

This book focuses on «Convertibilidad», the latest Argentine experience of exchange rate based stabilisation, and aims at isolating the main causes for its tragic collapse in 2001-2002. The characteristics of Argentina’s high and hyperinflation during the 1980s are analysed, and the theory of currency boards is expounded. The stabilisation tool, an institutionally highly credible currency board arrangement (CBA), though highly effective, could not be an optimal long-term solution, given the country’s structural and trade characteristics. The analysis of the causes of the CBA’s collapse yields a complex picture of interacting factors, among them invaliding ones that had created multiple vulnerabilities over years, and triggering ones that unfolded their worst potential in meeting such vulnerable conditions

Hyperinflation, Currency Board, and Bust

This book focuses on «Convertibilidad», the latest Argentine experience of exchange rate based stabilisation, and aims at isolating the main causes for its tragic collapse in 2001-2002. The characteristics of Argentina’s high and hyperinflation during the 1980s are analysed, and the theory of currency boards is expounded. The stabilisation tool, an institutionally highly credible currency board arrangement (CBA), though highly effective, could not be an optimal long-term solution, given the country’s structural and trade characteristics. The analysis of the causes of the CBA’s collapse yields a complex picture of interacting factors, among them invaliding ones that had created multiple vulnerabilities over years, and triggering ones that unfolded their worst potential in meeting such vulnerable conditions

Stabilization via currency board

The breakdown of the Argentine currency board in early 2002 produced a number of obituaries that often quite rashly declared the country?s monetary constitution since 1991 the main responsible for its recent near-catastrophic economic collapse. Contrary to such rather one-sided negative ascriptions to the currency board system, the intention of this paper is to give a comprehensive and balanced description of the currency board model in theory, as well as to name its functioning conditions under today?s economic and political conditions prevailing in developing and transforming countries. It will become clear that the success of a currency board in terms of lasting stabilization of an economy not only depends on its initial design (e.g. the choice of the anchor currency, of the exchange rate, the legal and institutional fixings) but also on an ongoing process of economic and institutional reform that extends from a general macroeconomic and especially public sector streamlining to banking sector reforms, product and labour marker deregulation, and to a general realignment of the economy towards export orientation and international competitiveness. The extent to which these reforms are tackled and completed decides over the degree to which the economy is able to absorb real shocks without incurring high economic and social adaptation costs, hence over the degree to which a country is able to benefit from the currency board?s strengths without falling victim to its potentially severe weaknesses. Along with some basic reflections about the concept and motivation of modern currency boards, sections 1-3 give a brief overview over the historical background of the currency board idea as well as of its implementation. Section 4 focuses on the constitutional elements of a currency board, while section 5 provides the core of the discussion of pros and cons of currency boards, depicting the system?s strengths and weaknesses as well as the conditions under which they materialize. Section 6 will discuss under which circumstances a currency board is a good choice for a country, and ask whether less strict stabilization policies might be able to deliver the hoped-for benefits less costly. Some problems related to the questions of duration and termination of currency boards are addressed in section 7. Finally, section 8 will give a brief exposition of the idea of dual currency boards as a theoretical extension of the currency board model which promises to eliminate one of the biggest immanent threats to a currency board

Stabilization via currency board

The breakdown of the Argentine currency board in early 2002 produced a number of obituaries that often quite rashly declared the country's monetary constitution since 1991 the main responsible for its recent near-catastrophic economic collapse. Contrary to such rather one-sided negative ascriptions to the currency board system, the intention of this paper is to give a comprehensive and balanced description of the currency board model in theory, as well as to name its functioning conditions under today's economic and political conditions prevailing in developing and transforming countries. It will become clear that the success of a currency board in terms of lasting stabilization of an economy not only depends on its initial design (e.g. the choice of the anchor currency, of the exchange rate, the legal and institutional fixings) but also on an ongoing process of economic and institutional reform that extends from a general macroeconomic and especially public sector streamlining to banking sector reforms, product and labour market deregulation, and to a general realignment of the economy towards exportorientation and international competitiveness. The extent to which these reforms are tackled and completed decides over the degree to which the economy is able to absorb real shocks without incurring high economic and social adaptation costs, hence over the degree to which a country is able to benefit from the currency board's strengths without falling victim to its potentially severe weaknesses. Along with some basic reflections about the concept and motivation of modern currency boards, sections 1-3 give a brief overview over the historical background of the currency board idea as well as of its implementation. Section 4 focuses on the constitutional elements of a currency board, while section 5 provides the core of the discussion of pros and cons of currency boards, depicting the system's strengths and weaknesses as well as the conditions under which they materialize. Section 6 will discuss under which circumstances a currency board is a good choice for a country, and ask whether less strict stabilization policies might be able to deliver the hoped-for benefits less costly. Some problems related to the questions of duration and termination of currency boards are addressed in section 7. Finally, section 8 will give a brief exposition of the idea of dual currency boards as a theoretical extension of the currency board model which promises to eliminate one of the biggest immanent threats to a currency board. --Currency,Board

Dual-purpose chicken - what does it taste like? Sensory evaluation of chicken meat and eggs of four dual-purpose chicken genetics

Die Forschung zur Sensorik von Fleisch und Eiern von Zweinutzungshühnern stellt aus wissenschaftlicher Sicht bislang eine Nische dar. In Kooperation mit dem EIP-Agri Projekts ZweiWert haben im Sommer 2023 daher Studierende an der DHBW Heilbronn im Integrations¬seminar Zweinutzungshühner: Wie den Mehrwert rüberbringen? mehrere Zweinutzungshuhn-Genetiken verkostet, analysiert und bewertet. Beurteilt wurden Coffee der Ökologischen Tierzucht (ÖTZ), Sundheimer aus dem Öko2Huhn-Projekt, RegioHuhn und Lohmann Dual sowie eine Kontrollgruppe einer klassischen Lege- bzw. Mastlinie. Ziel war es, herauszufinden, wie verschiedene Zweinutzungshühner schmecken und ob es bei Fleisch und Eiern sensorische Unterschiede oder Besonderheiten gibt. Sensorische Attribute, u.a. Aussehen, Geschmack und Geruch, wurden anhand eines mehrteiligen Beurteilungsbogens erfasst. Zweinutzungshühner schmecken besser, so lautet das Ergebnis dieser explorativen Studie kurzgefasst. Gemäß dem Urteil der Testenden bestehen jedoch Unterschiede; nicht alleine zwischen den verschiedenen Genetiken, sondern auch jeweils zwischen den einzelnen Teilen Brust, Schlegel, Flügel oder Sud. Die sensorischen Steckbriefe der vier verprobten Zweinutzungshühner fallen vielgestaltig aus und erlauben kein eindeutiges sensorisches Ranking. Das Fleisch von Lohmann Dual entspricht Verbraucherpräferenzen insgesamt offenbar am besten, während deren Eier (zubereitet) am wenigsten gefallen. Insgesamt indes besteht eine konsistente sensorische Überlegenheit der Zweinutzungshühner gegenüber der spezialisierten Mast- bzw. Legerasse. Diese Ergebnisse sollten sie sich in weiteren Untersuchungen bestätigen könnten einen Beitrag zur Steigerung der Verbraucherakzeptanz von Zweinutzungshühnern leisten und damit zu deren weiteren Verbreitung beitragen. Das EIP-Projekt mit dem Titel Aufbau von Wertschöpfungsketten für Zwei¬nutzungs¬hühner in Baden-Württemberg (ZweiWert) wird vom Ministerium für Ernährung, ländliche Räume und Verbraucherschutz Baden-Württemberg von 01/2022 bis 12/2024 gefördert. Projektpartner sind der Naturlandverband Baden-Württemberg, mehrere Fachgebiete der Universität Hohenheim und viele Partner aus der landwirtschaftlichen Erzeugung und Vermarktung.Research into the sensory properties of meat and eggs from dual-purpose chickens has so far been a niche from a scientific point of view. In cooperation with the EIP-Agri project "ZweiWert", students at the DHBW Heilbronn therefore tasted, analysed and evaluated several dual-purpose chicken genetics in the integration seminar "Dual-purpose chickens: How to communicate the added value" in summer 2023. The genetics Coffee" from the Ökologische Tierzucht (ÖTZ), "Sundheimer" from the Öko2Huhn project, "RegioHuhn" and "Lohmann Dual" as well as a control group from a classic laying or fattening line were assessed. The aim was to find out how different dual-purpose chickens taste and whether there are sensory differences or special features in meat and eggs Sensory attributes, including appearance, taste and smell, were recorded using a multi-methods assessment sheet. In short, the results of this explorative study show that dual-purpose chickens taste better. However, according to the testers judgement, there are differences not only between the different genetics, but also between the individual parts - breast, drumstick, wings or broth. The sensory profiles of the four dual-purpose chickens tested are varied and do not allow a clear sensory "ranking". The meat from Lohmann Dual apparently corresponds best to consumer preferences, while their eggs (cooked) are the least appealing. Overall, however, there is a consistent sensory superiority of the dual-purpose chickens over the specialised fattening or laying breed. These results - should they be confirmed in further studies - could contribute to increasing consumer acceptance of dual-purpose chickens and addressed in market communication to their further spread. The EIP project titled "Building Value Chains for Dual-Purpose Chickens in Baden-Württemberg" (ZweiWert) is funded by the Ministry of Food, Rural Areas and Consumer Protection of Baden-Württemberg from 01/2022 to 12/2024. Project partners include the Naturland Association of Baden-Württemberg, several departments of the University of Hohenheim, and many partners from agricultural production and marketing