This paper shows that there is a long-run relationship between the expected rate of depreciation in the black-market-exchange rate and the ratio of domestic to foreign money in Peru; that is, the hypothesis of currency substitution can explain the behavior of real holdings of money in Peru. The...

A number of banks in developed countries argue that the new capital requirements under Basel III are too stringent and that implementing the proposed regulation would require raising large amounts of capital, with adverse consequences on credit and the cost of finance. In contrast, many emerging...

By reviewing the experiences of Latin American countries with the restructuring of their financial sectors since 1982, this paper derives lessons regarding the most effective ways to deal with banking difficulties in developing countries. It then discusses whether these lessons have been put...