Search Results - subject:"Liability Dollarization"

A model of liability dollarization and myopic governments

Honig, Adam - In: International Economic Journal 20 (2006) 3, pp. 343-355

Liability dollarization of the domestic banking system represents a source of vulnerability for emerging market … dollar lending. Increased liability dollarization is shown to force the hand of future decision-makers into choosing fixed … reforms are necessary to reverse liability dollarization. …

Persistent link: https://www.econbiz.de/10005644211

Currency crises and monetary policy in economies with partial dollarization of liabilities

Proano, Christian; Flaschel, Peter; Semmler, Willi - 2006

The right response to a speculative attack on the domestic currency by monetary authorities in a country with liabilities in US dollars has been a matter of hot debate among academics and policy makers especially after the East Asian Crisis. Using a modified version of the currency crisis model...

Persistent link: https://www.econbiz.de/10003744532

Balance sheet effects and the country risk premium: An empirical investigation

Berganza, Juan; Chang, Roberto; Herrero, Alicia - In: Review of World Economics (Weltwirtschaftliches Archiv) 140 (2004) 4, pp. 592-612

Persistent link: https://www.econbiz.de/10005390884

Assessing Financial Vulnerability in Partially Dollarized Economies

Moron, Eduardo; Castro, Juan F.; Winkelried, Diego - EconWPA - 2004

, liability dollarization plays a vital role and its implications have been addressed in the literature via a “financial … accelerator” mechanism. After allowing for different degrees of liability dollarization in a general equilibrium framework, this … will only have marginal effects on welfare and vulnerability when compared to that associated to a reduction in liability …

Persistent link: https://www.econbiz.de/10005408161

International Capital Markets, Macroeconomic Stability, and Exchange Rate Stabilization in the CIS and East Asia

Schnabl, Gunther - EconWPA - 2004

Although most CIS and East Asian countries are de jure classified as free floaters, they de facto pursue (tight) dollar pegs. This paper emphasizes dollar denomination of short-term and long-term payment flows as reasons for exchange rate stabilization. Based on the analysis of ifcompetitive...

Persistent link: https://www.econbiz.de/10005556605

Assessing Financial Vulnerability in Partial Dollarized Economies

Castro, Juan; Morón, Eduardo; Winkelried, Diego - Departamento Académico de Economía, Universidad del … - 2004

reduction in liability dollarization." …"The reduction of macroeconomic vulnerability in emerging markets is at the core of the research agenda. Liability … dollarization plays a vital role and its implications have been addressed in the literature via a “financial accelerator” mechanism …

Persistent link: https://www.econbiz.de/10010628303

Dedollarizing the Peruvian Economy

Moron, Eduardo; Castro, Juan F. - EconWPA - 2003

Financial dollarization creates design problems for economic policy as increases the level of financial vulnerability. However, countries with high levels of dollarization have done almost nothing to reduce it. In this paper we study two ways to do it and we evaluate them within a model that...

Persistent link: https://www.econbiz.de/10005412579

De-dollarizing the Peruvian Economy: A Portfolio Approach

Morón, Eduardo; Castro, Juan - Departamento Académico de Economía, Universidad del … - 2003

"Financial dollarization creates design problems for economic policy as increases the level of financial vulnerability. However, countries with high levels of dollarization have done almost nothing to reduce it. In this paper we study two ways to do it and we evaluate them within a model that...

Persistent link: https://www.econbiz.de/10010842560

Why Do Emerging Economies Borrow in Foreign Currency?

Jeanne, Olivier - C.E.P.R. Discussion Papers - 2003

This Paper explores the hypothesis that the dollarization of liabilities in emerging market economies is the result of a lack of monetary credibility. I present a model in which firms choose the currency composition of their debts so as to minimize their probability of default. Decreasing...

Persistent link: https://www.econbiz.de/10005666604

Uncovering Central Bank Monetary Policy Objectives: Going Beyond Fear of Floating

Moron, Eduardo; Castro, Juan F. - EconWPA - 2002

Highly volatile exchange rates don't come cheap in economies with large liability dollarization ratios. Therefore …

Persistent link: https://www.econbiz.de/10005126281