This paper specifies and estimates a hybrid monetary policy base reaction function for the Dominican Republic (DR). The estimated reactions suggest that the Central Bank has been biased towards targeting the gap between the parallel and official exchange rates, apparently doing so in a more...

This paper investigates a demand for money relationship for the dominican Republic. The financial system of the Dominican Republic is underdeveloped, and there are no suitable domestic data on the opportunity cost of holding money. Economic links with the US suggest a possible role for a foreign...

This paper aims at improving our understanding of macro-monetary phenomena in developing countries. Specifically, it analyses a six-variable model of the Dominican Republic by implementing the cointegrating VAR framework, using annual data for the period 1950-1999. The inquiry is able to...