Highly volatile exchange rates don't come cheap in economies with large liability dollarization ratios. Therefore …

simultaneously discarded. Often, dollarization becomes an attractive option for developing countries that have experienced successive … equilibrium, but trigger a recession and increased unemployment. Since this, too, is unacceptable, dollarization turns out to be a …

This paper studies the gain from using money as an indicator when monetary policy in made under data uncertainty. We … state of the economy. Money reveals some of the private sector’s information to the policymaker, especially if there is a … forward looking element in money demand. We show that observing money can considerably reduce the loss that is due to …