Dollarization In Latin America

Author : Miguel A. Savastano
Publisher : International Monetary Fund
Page : 40 pages
File Size : 45,9 Mb
Release : 1996
Category : Business & Economics
ISBN : UCSD:31822021344775

Get Book

Dollarization in Latin America by Miguel A. Savastano Pdf

This paper examines the pattern of dollarization in Latin America, focusing on the experience of five countries (Argentina, Bolivia, Mexico, Peru and Uruguay) during 1970-1993. It presents evidence on the relative size of dollarization, the allocation of foreign currency deposits, and the behavior of money velocity. The discussion stresses the role of institutional factors, macroeconomic conditions, and the dynamics of money demand In shaping the dollarization process; it also highlights the shortcomings of indicators frequently employed to analyze the phenomenon. The paper provides a brief critical assessment of the empirical literature on dollarization, and identifies areas where further research seems warranted.

Author : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Economic Policy
Publisher : Unknown
Page : 58 pages
File Size : 49,8 Mb
Release : 2000
Category : Business & Economics
ISBN : STANFORD:36105050129159

Get Book

Official Dollarization in Latin America by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Economic Policy Pdf

Author : United States. Congress. House. Committee on Banking and Financial Services. Subcommittee on Domestic and International Monetary Policy
Publisher : Unknown
Page : 88 pages
File Size : 41,9 Mb
Release : 2000
Category : Business & Economics
ISBN : STANFORD:36105062824136

Get Book

Monetary Stability in Latin America by United States. Congress. House. Committee on Banking and Financial Services. Subcommittee on Domestic and International Monetary Policy Pdf

Author : Robert Rennhack,Masahiro Nozaki
Publisher : Unknown
Page : 0 pages
File Size : 48,9 Mb
Release : 2006
Category : Currency question
ISBN : OCLC:1135124090

Get Book

Financial Dollarization in Latin America by Robert Rennhack,Masahiro Nozaki Pdf

This paper tests several explanations for financial dollarization (FD), with an emphasis on Latin America. The results provide evidence that FD is a rational response to inflation uncertainty. The paper builds on previous research by finding that an exchange rate policy biased towards currency depreciation and currency mismatches tends to contribute to high FD and that FD is highly persistent. These results suggest that countries with significant FD should encourage the use of domestic currency by maintaining macroeconomic stability; allowing more exchange rate flexibility and less bias towards currency depreciation; and adapting prudential regulations to ensure that costs associated with FD are fully internalized in financial contracts. At the same time, restoring confidence in the domestic currency may take many years of sound policies.

Author : Mr.Pablo Emilio Guidotti,Mr.Carlos A. Rodriguez
Publisher : International Monetary Fund
Page : 32 pages
File Size : 42,7 Mb
Release : 1991-11-01
Category : Business & Economics
ISBN : 9781451941357

Get Book

Dollarization in Latin America by Mr.Pablo Emilio Guidotti,Mr.Carlos A. Rodriguez Pdf

The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.

Author : Mr.Sebastian Sosa,Ms.Mercedes Garcia-Escribano
Publisher : International Monetary Fund
Page : 25 pages
File Size : 43,9 Mb
Release : 2011-01-01
Category : Business & Economics
ISBN : 9781455211883

Get Book

What is Driving Financial De-Dollarization in Latin America? by Mr.Sebastian Sosa,Ms.Mercedes Garcia-Escribano Pdf

In the last decade, a group of Latin American countries (Bolivia, Paraguay, Peru, and Uruguay) experienced a gradual, yet sustained decline in financial dollarization. This paper documents the stylized facts and uses a standard VAR approach to examine the drivers of both deposit and credit de-dollarization. It finds that the exchange rate appreciation has been a key factor explaining deposit de-dollarization. The introduction of prudential measures to create incentives to internalize the risks of dollarization (including an active management of reserve requirement differentials), the development of a capital market in local currency, and de-dollarization of deposits have all contributed to a decline in credit dollarization. Continuing efforts on these fronts, while maintaining macroeconomic stability and strong fundamentals, would help deepening de-dollarization.

Author : Frederic S. Mishkin,Miguel A. Savastano
Publisher : World Bank Publications
Page : 38 pages
File Size : 55,5 Mb
Release : 2000
Category : Anti-inflationary policies
ISBN : 8210379456XXX

Get Book

Monetary Policy Strategies for Latin America by Frederic S. Mishkin,Miguel A. Savastano Pdf

Instead of focusing the debate about the conduct of monetary policy on whether the nominal exchange rate should be fixed or flexible, the focus should be on whether the monetary policy regime appropriately constrains discretion in monetary policymaking. Three frameworks deserve serious discussion as possible long-run strategies for monetary policy in Latin America. A hard exchange-rate peg, monetary targeting, and inflation targeting.

Author : Pedro Gomis-Porqueras,Carlos Serrano,Alejandro Somuano
Publisher : World Bank Publications
Page : 34 pages
File Size : 49,6 Mb
Release : 2000
Category : Banks and banking
ISBN : 8210379456XXX

Get Book

Currency Substitution in Latin America by Pedro Gomis-Porqueras,Carlos Serrano,Alejandro Somuano Pdf

What causes currency substitution (foreign money substituting for domestic money)? What significance has it had in recent banking crises? And what is the relationship between currency conversion and macroeconmic volatility in Latin America?

Author : Dominick Salvatore,James W. Dean,Thomas D. Willett,Thomas Willett
Publisher : Oxford University Press on Demand
Page : 491 pages
File Size : 54,8 Mb
Release : 2003
Category : Business & Economics
ISBN : 9780195155365

Get Book

The Dollarization Debate by Dominick Salvatore,James W. Dean,Thomas D. Willett,Thomas Willett Pdf

This book takes a global approach by discussing one of today's most controversial topics in business; dollarization. Since the collapse of the Soviet Union, and the formation of the Euro, many countries are debating whether or not a common currency is in their best interest.

Author : Victor A. Canto,Gerald Nickelsburg
Publisher : Springer Science & Business Media
Page : 203 pages
File Size : 51,8 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9789400932616

Get Book

Currency Substitution by Victor A. Canto,Gerald Nickelsburg Pdf

This work grew out of a series of investigations begun by the authors in 1980 and 1981. Specifically the authors pursued two lines of inquiry. First, to advance the state of the theoretical lit erature to better explain the crises of liberalization which seemed to be afflicting the third world in general and Latin America in particular. To do this, several different kinds of models were in vestigated and adapted. These are presented in Chapters 2, 3 and 5. Secondly an analysis of the empirical evidence was conducted in order to gain insight into the processes that were thought to be occurring and the theoretical models that were being developed. Some of this work appears in Chapters 3, 4, 5 and 6. Other work by the authors on these issues has been published elsewhere and is referenced herein. There are a great many people whose work and whose com ments have influenced this work. We would like to especially thank Guillermo Calvo, Michael Connolly, Sebastian Edwards, Roque Fernandez, Michael Darby, Robert Clower, Neil Wallace, John Kareken, Paul McNelis, Jeffrey Nugent, Jaime Marquez, Lee Ohanian, Leroy Laney, Jorge Braga de Macedo, Dale Henderson, vii Matthew Canzoneiri, Arthur Laffer, Marc Miles, and George Von Furstenberg whose ideas and comments gave rise to much of our work. We would like to thank Suh Lee for his assistance with the computations in Chapter 5.

Author : Pablo E. Guidotti
Publisher : Unknown
Page : 32 pages
File Size : 46,7 Mb
Release : 2006
Category : Electronic
ISBN : OCLC:1291210991

Get Book

Dollarization in Latin America by Pablo E. Guidotti Pdf

Since the 1970s, a number of high-inflation Latin American countries have experienced a persistent process of quot;dollarizationquot;. To interpret some of the stylized facts, this paper presents a simple model in which dollarization reflects the fact that there are costs involved in switching the currency denomination of transactions. The transaction costs of dollarization define a band for the inflation differential within which there will be no incentive to switch between currencies. Above the upper value of the band, the local currency gradually disappears as the economy becomes fully dollarized; below the lower value, de-dollarization occurs.

Author : Carl Cira,Elisa N. Gallo
Publisher : Unknown
Page : 192 pages
File Size : 43,8 Mb
Release : 2002
Category : Business & Economics
ISBN : IND:30000086882093

Get Book

Dollarization & Latin America by Carl Cira,Elisa N. Gallo Pdf

Author : Pedro Gomis-Porqueras
Publisher : Unknown
Page : 36 pages
File Size : 45,5 Mb
Release : 2000
Category : Banks and banking
ISBN : UCSD:31822028436913

Get Book

Currency Substitution in Latin America by Pedro Gomis-Porqueras Pdf

What causes currency substitution (foreign money substituting for domestic money)? What significance has it had in recent banking crises? And what is the relationship between currency conversion and macroeconmic volatility in Latin America?

Author : Andrew Berg,Eduardo Borensztein,Paolo Mauro
Publisher : International Monetary Fund
Page : 114 pages
File Size : 55,8 Mb
Release : 2002-12
Category : Business & Economics
ISBN : UCSD:31822030189203

Get Book

An Evaluation of Monetary Regime Options for Latin America by Andrew Berg,Eduardo Borensztein,Paolo Mauro Pdf

We assess monetary regime options for Latin American countries. The costs of a common currency are likely to outweigh its benefits, as those countries face diverse economic shocks, do not trade much with each other, and are affected by common international financial shocks only to the same extent as the average pair of emerging markets. Unilateral dollarization would be desirable only for those countries where there are strong links to the U.S. economy, the credibility of the monetary authorities is irreversibly lost, and there is keen demand for dollar-denominated financial assets. Finally, some countries in the region seem to be good candidates for meaningful and useful floating.

Author : Mr.Adolfo Barajas,Mr.Armando Méndez Morales
Publisher : International Monetary Fund
Page : 43 pages
File Size : 40,7 Mb
Release : 2003-01-01
Category : Business & Economics
ISBN : 9781451842807

Get Book

Dollarization of Liabilities by Mr.Adolfo Barajas,Mr.Armando Méndez Morales Pdf

Dollarization of liabilities (DL) has emerged as a key factor in explaining the vulnerability of emerging markets to financial and currency crises. "Usual suspects" of causing DL comprise "fatalistic" determinants such as a long history of unsound macroeconomic policies and development and institutional factors, aided by moral hazard opportunities related to government guarantees. This paper assesses empirically the relevance of these factors relative to alternative explanations. Based on a sample of Latin American countries, we find that ongoing central bank intervention in the foreign exchange market, relative market power of borrowers, and financial penetration are at least as important in explaining DL.