Levina, Irina; Zamulin, Oleg - In: Journal of Money, Credit and Banking 38 (2006) 3, pp. 679-696
A special case of dollarization is analyzed: quotation of prices in dollars. The proposed explanation is price stickiness: when price adjustment is costly, firms prefer to fix their prices in a stable foreign currency in order to avoid frequent price changes. The proposed model demonstrates that...