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...

תיאור מלא

מידע ביבליוגרפי
מחבר ראשי: Levy Yeyati, Eduardo
מחברים אחרים: Ize, Alain
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 1998.
סדרה:IMF Working Papers; Working Paper ; No. 1998/028
גישה מקוונת:Full text available on IMF
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100 1 |a Levy Yeyati, Eduardo. 
245 1 0 |a Dollarization of Financial Intermediation :   |b Causes and Policy Implications /  |c Eduardo Levy Yeyati, Alain Ize. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1998. 
300 |a 1 online resource (48 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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 bank deposits and loans as a function of macroeconomic uncertainty. Dollarization hysteresis is shown to occur when the expected volatility of the inflation rate is high in relation to that of the real exchange rate. The evidence shows that MVP dollarization generally approximates actual dollarization closely for a broad sample of countries, and policy implications are explored. 
538 |a Mode of access: Internet 
700 1 |a Ize, Alain. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1998/028 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1998/028/001.1998.issue-028-en.xml  |z IMF e-Library