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Giovannini, Alberto; Turtelboom, Bart - C.E.P.R. Discussion Papers - 1993

This paper reviews the extensive theoretical and empirical literature on currency substitution. After discussing the ambiguity surrounding the definition of currency substitution, the paper illustrates the causes of substitutability of different currencies using a cash-in-advance model and a...

Persistent link: https://www.econbiz.de/10005124337

Monetary Policies for Developing Countries: The Role of Institutional Quality

Huang, Haizhou; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2005

produce several departures from the conventional wisdom. We find that a pegged exchange rate or dollarization, while sometimes …

Persistent link: https://www.econbiz.de/10005789083

Global Monetary Policy Under a Dollar Standard

Devereux, Michael B; Shi, Kang; Xu, Juanyi - C.E.P.R. Discussion Papers - 2004

For the past four or five decades, the international monetary system has operated on a ’dollar standard’. Popular discussion suggests that this gives the US an advantage in the use of monetary policy. This Paper analyses the determination of monetary policy in a world with a dollar standard,...

Persistent link: https://www.econbiz.de/10005123745

The Roles of Monetary Policy in the Process of Economic Reform in Eastern Europe

Bofinger, Peter - C.E.P.R. Discussion Papers - 1990

The first part of the paper analyzes the inflationary risks associated with price liberalization, the welfare costs of inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the low credibility of stabilization policies and a...

Persistent link: https://www.econbiz.de/10005123602

Central Bank Communication and Output Stabilization

Eijffinger, Sylvester C W; Hoeberichts, Marco; … - C.E.P.R. Discussion Papers - 2004

Some central banks have a reputation for being secretive. A justification for this behaviour that we find in the literature is that being transparent about operations and beliefs hinders the central bank in achieving the best outcome. In other words, a central bank needs flexibility and...

Persistent link: https://www.econbiz.de/10005124006

Currency Substitution in a Two-Asset Two-Country Model: A Simulation Approach

Artis, Michael J; Gazioglu, Saziye - C.E.P.R. Discussion Papers - 1986

The paper reports results obtained from the simulation of a two-country model in which the real and financial sectors are integrated under an assumption of rational expectations and steady-state inflationary equilibria. The government of each country issues a single financial asset ("currency")...

Persistent link: https://www.econbiz.de/10005661801

Currency Substitution and Vehicle Currencies: Tests of Alternative Hypotheses for the Dollar, DM and Yen

Thomas, Stephen H; Wickens, Michael R. - C.E.P.R. Discussion Papers - 1991

Recent concern about the difficulty of obtaining structurally stable models of money demand combined with the removal of capital controls have drawn attention to the theory of currency substitution (CS). The purpose of this paper is to examine whether CS is a relevant factor in the demand for...

Persistent link: https://www.econbiz.de/10005662277

Dollarization and Exchange Rate Fluctuations

Honohan, Patrick - C.E.P.R. Discussion Papers - 2007

Although the worldwide growth in dollarization of bank deposits has recently slowed, it has already reached very high …, particularly the response of dollarization to exchange rate changes, which is shown to be too small to warrant ‘fear of floating …’ by dollarized economies. But high dollarization is shown to increase the risk of depreciation and even suspension, as …

Persistent link: https://www.econbiz.de/10005497830

Limiting Currency Volatility to Stimulate Goods Market Integration: a Price-Based Approach

Parsley, David; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2001

This Paper empirically studies the effect of instrumental and institutional stabilization of the exchange rate on the integration of goods markets. An instrumental stabilization of the exchange rate is accomplished through intervention in the foreign exchange market, or by monetary policies. An...

Persistent link: https://www.econbiz.de/10005661528

An Estimate of the Effect of Currency Unions on Trade and Output

Frankel, Jeffrey A; Rose, Andrew K - C.E.P.R. Discussion Papers - 2000

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; cross-sectional evidence indicates that trade stimulates output. This paper estimates the effect that currency union has, via trade, on output per capita. We use economic and geographic data for over 200...

Persistent link: https://www.econbiz.de/10005789088