Lamdany, Ruben; Dorlhiac, Jorge - In: Scandinavian Journal of Economics 89 (1987) 1, pp. 91-102
Within a utility maximizing framework, the authors study the effects of repl acing the national currency with the dollar in a small, open economy. The impact effect is a drop in the levels of liquidity and wealth. The economy reaccumulat es real balances by reducing consumption and showing a...