The Economic Irrelevance of Monetary Independence: The Case of Liberia

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Periodical article

Title:	The Economic Irrelevance of Monetary Independence: The Case of Liberia
Author:	Maynard, Geoffrey
Year:	1970
Periodical:	Journal of Development Studies
Volume:	6
Issue:	2
Period:	January
Pages:	111-132
Language:	English
Geographic term:	Liberia
Subjects:	central banks terms of trade Economics and Trade Development and Technology
External link:	https://doi.org/10.1080/00220387008421317
Abstract:	Analyses the monetary and balance of payments problems of Liberia, shoving hov they bear on the wider problem of growth and development, After a description of the economic and monetary characteristics of the Liberian economy, monetary and balance of payments problems are considered in more detail, and the pros and cons of establishing a national currency and a central bank are examined. A conclusion is that, although presenting the government with some difficulties, lack of an independant monetary system does not provide the crucial constraint on the government's ability to manage the economy in the short run or to promote real economic development in the longer run. Of greater importance in this respect are the constraints imposed by the present structure of the economy and by the fact that ownership and control of practically the whole of the productive sector, at least as far as the monetary economy is concerned, are in foreign hands. Ref., tables.