prices. These challenges become even greater when real transactions are dollarised, contaminating the formation of inflation … expectations. This introduces non-linearities and asymmetries into the implications of the exchange rate for inflation during …://ssrn.com/abstract=2870167' Inflation Mechanisms, Expectations and Monetary Policy …

of foreign currency holdings in M2X on one side and movements in the exchange rate or inflation on the other is derived … depends mainly on long-term movements in the exchange rate, while the effect of inflation on currency substitution is not …