Smuggling, Currency Substitution and Unofficial Dollarization : A Crime-Theoretic Approach /

Large stocks of U.S. dollars and other hard currencies circulate in the transition economies, in Latin America, and in other countries that have experienced macroeconomic mismanagement. Using a monetary model that combines the legal restrictions and crime-theoretic traditions, this paper demonstrate...

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Bibliografische gegevens
Hoofdauteur: Mourmouras, Alex
Andere auteurs: Russell, Steven
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2000.
Reeks:IMF Working Papers; Working Paper ; No. 2000/176
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:Large stocks of U.S. dollars and other hard currencies circulate in the transition economies, in Latin America, and in other countries that have experienced macroeconomic mismanagement. Using a monetary model that combines the legal restrictions and crime-theoretic traditions, this paper demonstrates how leaky exchange controls lead to currency substitution and progressive dollarization. The paper also analyzes the impact of dollarization on the ability of governments to earn seigniorage, the dynamics of dollarization in a growing economy, and the central role of expectations-specifically, confidence in the domestic currency-in determining the extent of dollarization and, potentially, in reversing it.
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Fysieke beschrijving:1 online resource (44 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
Toegang:Electronic access restricted to authorized BRAC University faculty, staff and students