Monetary policy choices under currency substitution

The thesis consists of three chapters, which deal with a number of issues at the intersection of Macroeconomics, Labor Economics, Development Economics and Monetary Economics. The third chapter titled "Monetary Policy Choices Under Currency Substitution" deals with a monetary policy question relevant for a large number of developing and emerging economies. In particular, it studies how monetary policy should be conducted in an environment with more than one currency in circulation (e.g., US dollars along with a domestic currency). In this paper, performance of a number of simple monetary policy rules is analyzed in a dynamic stochastic general equilibrium model with currency substitution.