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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 …
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We analyze the differential impact of domestic and foreign monetary policy on the local supply of bank credit in domestic and foreign currencies. We analyze a novel, supervisory dataset from Hungary that records all bank lending to firms including its currency denomination. Accounting for...
Persistent link: https://www.econbiz.de/10010418213
We analyze the differential impact of domestic and foreign monetary policy on the local supply of bank credit in domestic and foreign currencies. We analyze a novel, supervisory dataset from Hungary that records all bank lending to firms including its currency denomination. Accounting for...
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