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The paper looks at the challenges of conducting monetary policy in a context of high dollarization of the banking system and weak institutions in the Democratic Republic of the Congo. The empirical analysis confirms the limited effectiveness of the Central Bank of Congo in controlling inflation,...
Persistent link: https://www.econbiz.de/10010790264
This paper is part of the project "Financial Dedollarization: Policy Options" launched by the Inter … associated with financial dollarization as well as to evaluate the costs and benefits of alternative financial dedollarization … currency. It focuses on domestic asset holders, as opposed to foreign investors, as the primary targets of a dedollarization …
Persistent link: https://www.econbiz.de/10010653582
The paper analyzes dollarization in the Turkish economy given the evidence on dedollarization signals. On conducting a …, dedollarization that presumably started after 2001 has lost headway after May 2006. Thus, it seems too early to conclude that … dollarization changed its route to dedollarization. …
Persistent link: https://www.econbiz.de/10011062883
, of the Cuban revolution in the economic field, until the recent dedollarization. It underlines its economic challenges at …
Persistent link: https://www.econbiz.de/10005510633
This paper develops a model to explain the determinants of financial dollarization. Expanding on the existing literature, our framework allows interest rate differentials to play a role in explaining financial dollarization. It also accounts for the increasing presence of foreign banks in the...
Persistent link: https://www.econbiz.de/10011604794
We analyze the effect of European Union (EU) membership on financial dollarization for the Central and Eastern European countries. Using a unique monthly dataset that spans about two decades, we find that both the accession process toward EU membership and EU entry have a direct impact on...
Persistent link: https://www.econbiz.de/10010270541
Serbia has applied inflation targeting against the backdrop of financial dollarization for almost a decade. In such circumstances, efficiency of monetary policy instruments decreases and begs the question of efficiency of the monetary regime efficiency issue. Although there is some empirical...
Persistent link: https://www.econbiz.de/10012217853
This paper discusses the role of sterilized foreign exchange (FX) interventions as a monetary policy instrument for emerging market economies in response to external shocks. We develop a model for a commodity-exporting small open economy in which FX intervention is considered as a balance sheet...
Persistent link: https://www.econbiz.de/10012658399
is estimated for the last decade. We find that ruble appreciation was the main driver of the de-dollarization that …
Persistent link: https://www.econbiz.de/10012148655
Persistent link: https://www.econbiz.de/10009573228