Author : Dominick Salvatore
Publisher : Oxford University Press
Page : 491 pages
File Size : 24,92 MB
Release : 2003
Category : Business & Economics
ISBN : 0195155351
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 : Dominick Salvatore
Publisher :
Page : 490 pages
File Size : 35,44 MB
Release : 2003
Category : Foreign exchange
ISBN : 9781602567160
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 : Pablo Druck
Publisher :
Page : 27 pages
File Size : 50,59 MB
Release : 2001
Category : Anti-inflation policies
ISBN :
Author : Eduardo Levy Yeyati
Publisher : MIT Press
Page : 364 pages
File Size : 15,4 MB
Release : 2003
Category : Business & Economics
ISBN : 9780262122504
Theoretical and empirical analysis of de jure dollarization. With the persistent instability of international financial markets, emerging economies are exploring new ways to reduce exposure to capital flow volatility. Some analysts argue that financially open economies are best served by more flexible regimes, while others argue in favor of extreme exchange rate regimes that have a strong commitment to a fixed parity or dispense with an independent currency. The successful launch of the euro has made more realistic the prospect of replacing a national currency with a strong foreign one. Recent examples include the adoption of the US dollar by Ecuador and El Salvador. The introduction of a foreign currency as sole legal tender, termed full (de jure) dollarization, has been the center of much political and academic debate. This book provides a comprehensive analysis of the issues from both theoretical and empirical perspectives. The topics discussed include the role of balance sheet effects, the linkage between currency risk and country risk, the impact of dollarization on trade, financial integration and credibility, the implications of dollarization for the lender of last resort, and the institutional and political economy aspects of dollarization.
Author : Dominick Salvatore
Publisher : Oxford University Press
Page : 476 pages
File Size : 47,86 MB
Release : 2003-03-27
Category : Business & Economics
ISBN : 0190288671
This book takes a global approach, with an emphasis on North and Latin America respectfully, by discussing 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 and 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. Many advocate the notion of a common currency, while others feel that in doing so will create financial costs for all that take part, with the severity varying from country to country.
Author : Alain Ize
Publisher : INTERNATIONAL MONETARY FUND
Page : 31 pages
File Size : 45,90 MB
Release : 2005-09-01
Category :
ISBN : 9781451862065
De facto (unofficial) dollarization, defined as the holding by residents of assets and liabilities denominated in a foreign currency, is a policy concern in an increasing number of developing economies. This paper addresses the dollarization debate from this perspective, with the goal of setting the stage for a more detailed and focused discussion of whether de-dollarization should be a policy objective and, if so, how best to pursue this objective. We review existing theories of de facto dollarization and the extent to which they are supported by the available evidence, presents the main strategies for reform, and proposes a list of policy recommendations.
Author : Paul Bowles
Publisher : United Nations Publications
Page : 27 pages
File Size : 28,93 MB
Release : 2006
Category : Business & Economics
ISBN : 9789211216172
Between 1998 and 2002 Mexico was host to an intense debate over dollarization. This paper examines the conjunctural factors which led to the emergence of this debate, reviews the main participants in the debate and their arguments, and discusses why the debate ended. We further argue that the Mexican debate can best be understood not as one between rival ideological positions but between different, say, mainstream neo-liberal positions. There is no mainstream consensus on the preferred form of the institutional governance of money. The Mexican debate on dollarization reflects this rather than simply the imperatives of global market pressures. Publishing Agency: United.
Author : Roberto Chang
Publisher :
Page : 44 pages
File Size : 28,72 MB
Release : 2002
Category : Currency question
ISBN :
This paper discusses major analytical aspects of dollarization and their practical implications. We develop a simple model to stress that dollarization implies the loss of independent monetary policy and of seigniorage, yet the significance of such losses can only be evaluated in conjunction with assumptions about the policymaking process. If the government is benevolent and has no credibility problems, dollarization causes a fall in welfare, which can be measured by the implied seigniorage loss or using Mundellian optimal currency area criteria. However, outcomes are rather different if credibility is absent and dollarization can serve as a commitment device: the welfare impact of dollarization is ambiguous, and seigniorage measures and Mundellian criteria may be misleading indicators of the true cost of dollarization. We also evaluate other implications of dollarization, such as those related to last resort lending and financial stability.
Author : Emilio Ocampo
Publisher :
Page : 0 pages
File Size : 42,50 MB
Release : 2023
Category :
ISBN :
We analyze a recent paper that claims that dollarizing an economy in the presence of a "dollar shortage" will provoke an immediate sharp reduction in real output and welfare. We find many problems with the model that supports this conclusion: confusion about the nature of a dollar shortage and its practical implications, invalid assumptions, invariant calibration in the presence of a regime change and lack of empirical testing. In our opinion, the paper does not make a valuable contribution to the dollarization debate nor provide useful guidance to policymakers. The proposed model is based on unrealistic assumptions and its predictions are contradicted by the available evidence. A more promising and useful line of research would have been to investigate what happens to a dollarized economy in a scenario of exchange rate overshooting and how it compares in relation to other stabilization plans.
Author : Matias Vernengo
Publisher : Edward Elgar Publishing
Page : 319 pages
File Size : 33,63 MB
Release : 2006-01-01
Category : Business & Economics
ISBN : 1847200257
This book brings together an impressive and diverse group of authors to discuss its central theme: whether or not the dollarized international monetary system is sustainable in the context of the global economy it helped create. In addition to its uniquely well-rounded and comprehensive coverage of the issues, this lively and highly readable volume provides an accurate assessment of the lack of consensus in the current debate. A must read for anyone interested in currency crises and the increasing vulnerability of the dollar. Jane D Arista, Director of Progams, Financial Markets Center, US This book deals with the economic consequences of monetary integration, which has long been dominated by the Optimal Currency Area (OCA) paradigm. In this model, money is perceived as having developed from a private sector cost minimization process to facilitate transactions. Not surprisingly, the book argues, the main advantage of monetary integration in the OCA context is the reduction of transaction costs, yet the validity of OCA to analyze processes of monetary integration seems to be limited at best. The contributors in this volume try to go beyond the OCA model and understand the political economy of monetary integration by comparing the European Monetary Union with the dollarization (formal and informal) process in Latin America. The contributors, many of whom are leading lights, reflect the disagreements and the changing views on the proper monetary arrangements in a globalized world and suggest that monetary integration and dollarization are not the solution for the great majority of countries around the world. Monetary Integration and Dollarization brings together mainstream and heterodox views of monetary integration and uses the European and North American experiences as a guide for the discussion of dollarization in developing countries. It will appeal to scholars, researchers and policy makers in the fields of financial and international economics.
