Macroprudential policy has gained prominence for promoting financial stability. In this paper, we assess the effectiveness of macroprudential policy in reducing credit growth over a 22-year period across 129 countries. Additionally, we investigate the interaction between macroprudential policy,...

The paper provides a comprehensive econometric analysis of currency substitution for Latvia. Rather than drawing inferences on the degree of currency substitution from domestic money demand modelling, the most common approach to empirical analysis of the phenomenon, direct modelling of currency...

The paper analyses the factors driving dollarization in Lithuania during the period from December 1992 to August 2000. Starting with a brief overview of the major economic and political developments in Lithuania, the study attempts to model the process of dollarization by applying rigorous time...

This paper develops a microfounded dynamic dual-currency model subject to commitment and bargaining frictions featuring endogenous acceptance of alternative currencies as a function of jointly-determined fiscal and monetary policy. Steady-state public expenditures, public debt, distortionary...

This study proposes to use the OCAs Theory as theoretical basis to analyze the Ecuadorian Full Dollarization by understanding the Ecuador-United States (US) duo as an "Informal Monetary Union". At least two phenomena are of interest: (i) to study the degree of synchronization of the main...

This study examines the persistence of currency substitution in Nigeria by applying the Bounds testing approach to cointegration and including a ratchet variable in the estimated Autoregressive Distributed Lag (ARDL) model. Empirical results show that factors such as exchange rate risks,...

This paper examines the existence, causes and effects of currency substitution in Nigeria by estimating conventional money demand equations based on a partial adjustment and an autoregressive distributed lag models using three definitions of monetary aggregates. The behavior of the foreign...