macroeconomic fluctuations, (ii) accounting for liability dollarization ameliorates the model fit, and (iii) valuation effects on …, differentiated home and foreign goods, and endogenous exchange rate movements. Furthermore, our model incorporates liability … dollarization as a particular form of financial frictions in EMEs. In this vein, weaccount for the fact that emerging markets …

macroeconomic fluctuations, (ii) accounting for liability dollarization ameliorates the model fit, and (iii) valuation effects on …, differentiated home and foreign goods, and endogenous exchange rate movements. Furthermore, our model incorporates liability … dollarization as a particular form of financial frictions in EMEs. In this vein, we account for the fact that emerging markets …