The impact of an unanticipated monetary shock in a small open economy with dollarization, factor price rigidities, and … nontradeables is re-examined in an optimizing intertemporal general equilibrium model. The framework of an earlier study is extended … phenomenon of dollarization so characteristic of transition economies. The major finding is that in the event of small monetary …

We examine the implications of high degrees of dollarization for the choice of exchange rate regime and the information …

calibrated for the Democratic Republic of the Congo in the 1990s and is used to derive estimates of the rate of dollarization. …

inflation. We discuss dollarization, administrative interventions, and other features complicating monetary policy transmission …

This paper explores how real dollarization (dollar indexing of wages), financial dollarization (dollar denomination of … shocks. Real dollarization is avoided as long as the home monetary authorities conduct monetary policy optimally (maximize … local welfare). Suboptimal monetary policies are more likely to induce real dollarization when the correlation between …

The paper looks at the challenges of conducting monetary policy in a context of high dollarization of the banking …