This dissertation explores the reasons behind dollarization hysteresis and analyzes the extent and dynamics of dollarization in different economies. It finds role for policies to reduce dollarization to achieve a more stable economy. The first chapter uses a network externality …
"5" Result
Sort By:
Fifteen years of civil war and the economic crisis in 1992 left remarkable scars on the Lebanese economy. The dramatic devaluation of the Lebanese Pound (LBP) and high inflation rate imposed a real threat for the wealth of individuals and firms. They sought refuge in the US doll…
The shift from a domestic currency (peso) to dollar denominated deposits (deposit dollarization) in Argentina and Bolivia is explained with a nonlinear model that incorporates ratcheting effects, hysteresis and network externalities. There are two principal factors behind these …
In the process of an inflation rate increase, there is commonly a shift away from the use of domestic money toward the use of foreign money. The reason for this shift is that foreign money provides more appropriate services in terms of performing the functions of money, which ar…