#CurrencyBoards:
1. A currency board won't save the Lira, contra to what some people are claiming. Government debt is the problem. Simply put, a currency board run by an insolvent government will fail. The government will eventually grab the foreign reserves.

2. Lebanon may still have the resources to back its currency 100% with dollar assets. But what about the looming debt? Lebanon does not have the resources to back all its government debt with dollar assets! If it did, it would not have borrowed in the first place.

3. So what happens when the debt comes due? If the government cannot raise enough in taxes to pay it off, or convince investors it can raise future taxes enough to borrow new money to roll it over, it must either default on the debt or print unbacked Lira.

4. The currency board can only work, if it is part of a comprehensive package by which the gov commits to solve its fiscal problems, either by spending cuts, defaults, or some means other than inflation.  But it is the fiscal package, not the currency board, doing the work.

5. Those promoting the idea of a currency board are thinking of inflation as coming from money alone. Control money creation, you control inflation. Not really. You have to control all government debt to control inflation, sooner or later.