Dollarization of Financial Intermediation : Causes and Policy Implications /

This paper presents a portfolio model of financial intermediation in which currency choice is determined by hedging decisions on both sides of a bank's balance sheet. Minimum variance portfolio (MVP) allocations are found to provide a natural benchmark to estimate the scope for dollarization of...

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Bibliographic Details
Main Author: Levy Yeyati, Eduardo
Other Authors: Ize, Alain
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1998.
Series:IMF Working Papers; Working Paper ; No. 1998/028
Online Access:Full text available on IMF