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Dollarization and Economic Performance : An Empirical Investigation
Edwards, Sebastian - 2001
In this paper I investigate the historical record of countries that have lived under a 'dollarized' monetary system. As it turns out, this is a very small group of counties, most of which have operated under very special circumstances, and for which there are very limited data. The results...
Persistent link: https://www.econbiz.de/10012470450
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Monetary Policy Strategies for Latin America
Mishkin, Frederic S. - 2000
The paper examines possible monetary policy strategies for Latin America that may help lock-in the gains in the fight against inflation attained by the region during the 1990s. We start by calling for a refocus of the debate about the conduct of monetary policy away from thinking that it is...
Persistent link: https://www.econbiz.de/10012471153
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Financial Dollarization in Emerging Markets : Efficient Risk Sharing or Prescription for Disaster?
Christiano, Lawrence J.; Dalgic, Husnu; Nurbekyan, Armen - National Bureau of Economic Research - 2021
This paper pushes back against two views about the effects of dollarization. First, there is a view that the dollar is … widespread view that dollarization raises the risk of systemic banking and other crises. Although we identify sources of … fragility in some aspects of dollarization, the common view that financial dollarization is a source of fragility is over …
Persistent link: https://www.econbiz.de/10012599324
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The Real Effects of Foreign Inflation in the Presence of Currency Substitution
Engel, Charles - 1987
The paper explores optimizing models of small open economies that hold foreign money balances. Particular attention is paid to the impact of foreign inflation on the real exchange rate and other real variables. At first, an environment in which foreign money is the only traded asset is explored....
Persistent link: https://www.econbiz.de/10012476929
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The Desirability of a Dollar Appreciation, Given a Contractionary U.S. Monetary Policy
Frankel, Jeffrey A. - 1983
Undesirable real effects have been attributed to floating exchange rates in general, and the 1980-83 appreciation of the dollar in particular.In the appreciating country, the U.S., export industries lose competitiveness and so output falls. In the other country, say Europe, the exchange rate...
Persistent link: https://www.econbiz.de/10012477992
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Vehicle Currencies And the Structure Of International Exchange
Krugman, Paul R. - 1979
This paper is concerned with the reasons why some currencies, such as the pound sterling and the U.S. dollar, have come to serve as "vehicles" for exchanges of other currencies. It develops a three-country model of payments equilibrium with transaction costs, and shows how one currency can...
Persistent link: https://www.econbiz.de/10012478814
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Domestic Price Dollarization in Emerging Economies
Drenik, Andres - 2020
This paper studies the dollarization of prices in retail markets of emerging economies. We develop a model of the firm …, price dollarization is positively correlated with asset dollarization and inflation, and negatively correlated with exchange …
Persistent link: https://www.econbiz.de/10012481195
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Foreign Currency Borrowing of Corporations as Carry Trades : Evidence from India
Acharya, Viral V. - 2020
We establish that macroprudential policies limiting capital flows can curb risks arising from corporate foreign currency borrowing in emerging markets. Using detailed firm-level data from India, we show that propensity to issue foreign currency debt for the same firm is higher when the...
Persistent link: https://www.econbiz.de/10012482315
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Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs
Goldberg, Linda S. - 2010
Following a scarcity of dollar funding available internationally to banks and financial institutions, starting in December 2007 the Federal Reserve established or expanded Temporary Reciprocal Currency Arrangements with fourteen foreign central banks. These central banks had the capacity to use...
Persistent link: https://www.econbiz.de/10012462892
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Monetary Policy Challenges in Emerging Markets : Sudden Stop, Liability Dollarization, and Lender of Last Resort
Calvo, Guillermo A. - 2006
The paper argues that Emerging Market economies (EMs) face financial vulnerabilities that weaken the effectiveness of a domestic Lender of Last Resort (LOLR). As a result, monetary policy is inextricably linked to the state of the credit market. In particular, the central bank should be ready to...
Persistent link: https://www.econbiz.de/10012465871