Financial Dollarization Equilibria : A Framework for Policy Analysis /

Rapidly rising dollarization and numerous related financial crises in recent years have heightened the need for policy action. This paper contributes to the policy debate by presenting a common analytic framework that examines the roots of de facto financial dollarization under different economic en...

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Detalles Bibliográficos
Autor Principal: Ize, Alain
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2005.
Series:IMF Working Papers; Working Paper ; No. 2005/186
Acceso en liña:Full text available on IMF
Descripción
Summary:Rapidly rising dollarization and numerous related financial crises in recent years have heightened the need for policy action. This paper contributes to the policy debate by presenting a common analytic framework that examines the roots of de facto financial dollarization under different economic environments and analyzes its interplay with monetary and prudential policies. In addition to providing a systematic analysis of the existence, stability, and multiplicity of dollarization equilibria, the paper makes a few novel contributions. In particular, it stresses the key role played by monetary policy endogeneity and identifies the underlying determinants of the peso premium that are responsible for inducing a preference for the dollar in financial transactions.
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Descrición Física:1 online resource (30 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
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