Hard currency policy

硬通貨政策　—　Institutions

The post-war Austrian practice of pegging the schilling to the mark.

A policy of borrowing credibility by de facto pegging the domestic currency to a strong currency (the mark). Post-war Austria practised this with the schilling, surrendering control over interest rates as the price for stability.

⚠ The credibility of a currency can be imported. However, there are no returns.