A Currency Board for Ukraine

As Ukrainians mourn their dead and vow to prosecute their recently deposed leader, the valor of those who died must now inspire others to build a new Ukraine worthy of their struggle and sacrifice. Democracy and a better future must be secured in pragmatic terms. Economic benefits must begin to flow in tandem with Ukraine's nascent commitment to genuine self-government and responsibility.

Europe and the U.S. are rushing to put together billions of dollars in financial aid for Ukraine, keenly aware that they have been granted a second chance. Last November's potential trade deal with the European Union was scuttled when Ukraine turned to Russia at the last moment for economic sustenance.

But if efforts to forge a newly generous package get bogged down in trans-Atlantic negotiations and the institutional requirements of the International Monetary Fund, the moment to help Ukraine gain a solid economic footing may be lost. And should its currency, the hryvnia, meanwhile succumb to panic and meltdown, the opening for freedom may be squandered.

The most expedient way to establish a sound-money foundation—in keeping with Ukrainian aspirations for an independent nation capable of succeeding in the global economy—would be to initiate a currency board.

Read Full Article