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In terms of the efficiency of monetary policy and economic stability, de-dollarization and its analysis, its impact on … the economy is a topical issue. The purpose of this paper is to describe the dollarization and de-dollarization process …, which reflected in the economic and economic processes. It also reflects the problems that impede the growth of de-dollarization …
Persistent link: https://www.econbiz.de/10012835738
Hong Kong (HK) adopted the Linked Exchange Rate (LER) system in 1983, and it has been operating successfully for more than three decades. However, the maintenance costs for the LER system have grown exorbitantly and could outpace the costs of an exit, especially under the combined influence of a...
Persistent link: https://www.econbiz.de/10012960313
Since the 2008 financial crisis, a number of economists have suggested that central banks should follow an NGDP targeting rule. Other researchers have argued that a free and unregulated banking system stabilizes NGDP growth as an unintended consequence. We explore this argument in a simple model...
Persistent link: https://www.econbiz.de/10012937302
A currency union is when several independent sovereign nations share a common currency. This has been a recurring phenomenon in monetary history. In this article I study the theoretical foundations of such unions, and discuss some important currency unions in history, most notably the case of...
Persistent link: https://www.econbiz.de/10012868671
consists of flexible dollarization plus a free banking regime. By flexible dollarization, we mean that the peso should be …
Persistent link: https://www.econbiz.de/10013059221
currency intermediation (partial dollarization of the domestic banking system) and the ways to address its systemic risks …
Persistent link: https://www.econbiz.de/10012545879
, increasing in the extent to which policymakers engage in rent-seeking. Dollarization occurs as a result of inflation …
Persistent link: https://www.econbiz.de/10013237100
We analyze the costs and benefits of full dollarization compared to its closest alternative, a currency board …
Persistent link: https://www.econbiz.de/10013212036
Persistent link: https://www.econbiz.de/10013214080
Arguments for and against abandoning independent national currencies and monetary policies have varied considerably over time and by country. For New Zealand, it can be argued that a key driving force behind recent debates has been the conduct of monetary policy and the need for improved overall...
Persistent link: https://www.econbiz.de/10013149028