This paper explores how real dollarization (dollar indexing of wages), financial dollarization (dollar denomination of financial contracts), and monetary policy interact in a general equilibrium, new open-economy macroeconomics model with real shocks. Real dollarization is avoided as long as the...

This paper reviews from an international perspective the challenges faced by Cuba in unifying its exchange rate and compares various options to meet this objective. It argues in favor of a fast unification approach but cushioned during a transition period by lump-sum taxes and subsidies applied...

This paper reviews from an international perspective the challenges faced by Cuba in unifying its exchange rate and compares various options to meet this objective. It argues in favor of a fast unification approach but cushioned during a pre-announced transition period by lump-sum taxes and...

En los enfoques explicativos de las fluctuaciones del mercado cambiario se consideran los repentinos saltos como resultado de la accion especulativa. En este articulo se sostiene por el contrario que la inestabilidad cambiaria puede resultar del desplazamiento del interes publico por la riqueza...