Network Externalities and Dollarization Hysteresis : The Case of Russia /

Dollarization in Russia increased rapidly during the early 1990s, but failed to come down in the second half of the 1990s in spite of exchange rate stabilization. To explain this "dollarization hysteresis," this paper develops a model in which network externalities in the demand for curren...

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Hlavní autor: Oomes, Nienke
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2003.
Edice:IMF Working Papers; Working Paper ; No. 2003/096
On-line přístup:Full text available on IMF
Popis
Shrnutí:Dollarization in Russia increased rapidly during the early 1990s, but failed to come down in the second half of the 1990s in spite of exchange rate stabilization. To explain this "dollarization hysteresis," this paper develops a model in which network externalities in the demand for currency can generate multiple stable steady states for the dollarization ratio. The model is estimated using a new source of data on dollar currency holdings in Russia. On the basis of these estimates, which confirm the existence of network externalities, the paper discusses several policies that could result in a permanent decrease in dollarization.
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Fyzický popis:1 online resource (36 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students