Monetary Policy in Dollarized Economies
Title | Monetary Policy in Dollarized Economies PDF eBook |
Author | Mr.Adam Bennett |
Publisher | International Monetary Fund |
Pages | 62 |
Release | 1999-03-15 |
Genre | Business & Economics |
ISBN | 9781557757579 |
Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.
Economic Policy in a Highly Dollarized Economy
Title | Economic Policy in a Highly Dollarized Economy PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Pages | 50 |
Release | 2003-09-30 |
Genre | Business & Economics |
ISBN | 9781589061897 |
This study examines the challenges and issues facing policymakers in highly dollarized economies. Focusing on Cambodia, which achieved almost complete dollarization during 1991-95, the authors review recent developments in the literature on dollarization and examine the costs and benefits of dollarization in Cambodia, including the ensuing macroeconomic policy implications. They carry out an econometric estimation of cash foreign currency circulation in Cambodia in order to gauge the degree of dollarization. In addition to this analysis, the authors present a short description of Cambodia’s economic, financial, and structural background.
The Monetary Transmission in Dollarized and Non-Dollarized Economies
Title | The Monetary Transmission in Dollarized and Non-Dollarized Economies PDF eBook |
Author | Mr.Santiago Acosta Ormaechea |
Publisher | International Monetary Fund |
Pages | 23 |
Release | 2011-04-01 |
Genre | Business & Economics |
ISBN | 1455234095 |
The paper conducts a comparative study of the monetary policy transmission in two economies that run a well-established IT regime, Chile and New Zealand, vis-à-vis two economies operating under relatively newer IT regimes, and which are exposed to a significant degree of dollarization, Peru and Uruguay. It is shown that the traditional interest rate channel is effective in Chile and New Zealand. For Peru and Uruguay, the exchange rate channel is instead more relevant in the transmission of monetary policy. This latter result follows from the limited impact of the policy rate in curbing inflationary pressures in these two countries, in combination with the fact that they have a relatively large and persistent exchange rate pass through. Finally, it is shown that the on-going de-dollarization process of Peru and Uruguay has somewhat strengthened their monetary transmission through the interest rate channel.
Financial Dollarization
Title | Financial Dollarization PDF eBook |
Author | A. Armas |
Publisher | Springer |
Pages | 349 |
Release | 2006-07-14 |
Genre | Business & Economics |
ISBN | 0230380255 |
This volume provides a rigorous and balanced perspective on the causes and implications of dollarization, and the basic policies and options to deal with it: the adaptation of the monetary and prudential frameworks, the development of local-currency substitutes, and the scope for limiting dollarization through administrative restrictions.
The Dollarization Debate
Title | The Dollarization Debate PDF eBook |
Author | Dominick Salvatore |
Publisher | Oxford University Press, USA |
Pages | 491 |
Release | 2003 |
Genre | Business & Economics |
ISBN | 019515536X |
This book takes a global approach to one of today's most controversial topics in business: Dollarization. With the collapse of the former Soviet Union, and the formation of the Euro in Europe, many countries are debating whether or not a common currency is in their best interest. This intriguing volume brings together the leading participants in the current dollarization debates.
Dollarization in Transition Economies
Title | Dollarization in Transition Economies PDF eBook |
Author | Ms.Ratna Sahay |
Publisher | International Monetary Fund |
Pages | 34 |
Release | 1995-09-01 |
Genre | Business & Economics |
ISBN | 145195008X |
After most restrictions on foreign currency holdings were relaxed in the early 1990s, foreign currency deposits in transition economies have been increasing rapidly. This paper takes a first look at the evidence on dollarization for 15 transition economies, and then discusses some key conceptual and policy implications. Depending on the institutional constraints, foreign currency deposits as a proportion of broad money reached a peak of between 30 and 60 percent in 1992-93. Unlike what has been observed in Latin America, however, dollarization has fallen substantially in the aftermath of successful stabilization plans in Estonia, Lithuania, Mongolia, and Poland. Since foreign currency deposits reflect mainly a portfolio choice, the fall in dollarization can be primarily attributed to higher real returns on domestic-currency assets, as a result of lower inflation and more market-determined interest rates.
Implementing Official Dollarization
Title | Implementing Official Dollarization PDF eBook |
Author | Mr.Luis Ignacio Jácome |
Publisher | International Monetary Fund |
Pages | 33 |
Release | 2010-04-01 |
Genre | Business & Economics |
ISBN | 1455200654 |
This paper identifies key aspects that countries willing to officially dollarize must necessarily address. Based on country experiences, it discusses the critical institutional bases that are necessary to unilaterally introduce a new legal tender, describes the relevant operational issues to smooth the transition toward the use of the new currency, and identifies key structural reforms that are necessary to favor the sustainability over time of this monetary regime. The paper is aimed at providing preliminary guidance to policy makers and practitioners adopting official dollarization. The paper does not take a position on how appropriate this monetary arrangement is. Experiences from adopting dollarization in Ecuador, El Salvador, Kosovo, Montenegro, and Timor-Leste are illustrated briefly.