Download or read book Dollarization in Lebanon written by Mr.Johannes Mueller and published by International Monetary Fund. This book was released on 1994-10-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Download or read book Trust Freedom and Wealth Creation written by Armen Papazian and published by . This book was released on 2014 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores currency substitution in Lebanon within the context of the recently growing debate on dollarization. Indeed, a number of distinguished scholars have lately made the case for full dollarization following its adoption in Ecuador (2000) and El Salvador (2001). This study, one of the very few focusing on Lebanon, looks at deposit, private liability, and public debt dollarization ratios and finds that Lebanon, when compared to Latin American countries, ranks 5th in deposit dollarization and 2nd in liability dollarization. The study also reveals that dollarization ratios have stayed persistently high despite declining inflation rates and high real returns on Lebanese Pound denominated assets. The paper suggests a political economy based interpretation of the persistently high rates of dollarization, and finds that the latter seem to be a market imposed monetary condition, a response to the unfree and co-opted nature of the state. Indeed, it is possible to argue that currency substitution gives domestic consumers the necessary protection from local wealth-destroying policies. While advocates of dollarization perceive the process as the least bad alternative to macroeconomic mismanagement, I suggest that it is in fact the worst alternative to learning the tools and techniques of domestic wealth creation. Money is the very symbol of societal trust, and is thus more elemental than exchange rate policy. In the case of Lebanon, theoretical and idiosyncratic reasons lead to the recommendation of a de-dollarization process. On a suggestive basis, I propose that the issuing of a new Lebanese Lira could be a viable way of providing incentives and inspiring trust.
Download or read book Dollarization in Lebanon written by Johannes Müller and published by . This book was released on 1994 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Dislocation and Recovery in Lebanon written by Mr.Paul Cashin and published by International Monetary Fund. This book was released on 1995-12-01 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides background information on the Lebanese economy, based on an analysis of the economic consequences of war, and discusses several issues that will be central to Lebanon's prospects for recovery
Download or read book Currency Substitution in Lebanon written by Imad Amin Shihab and published by . This book was released on 1988 with total page 720 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the Issue of 'dollarizatian'in the Lebanese economy' has increased to an extent where It has become a critical problem for the country, from the stand¬point of its economic as well as social effects on the economy. This thesis focuses primarily on the analysis of the causes underlying the growth of dollarization in the economy, its consequences, as yell as suggesting recommendations in order to cope with the emerging problem in recent years.
Download or read book Full Dollarization of the Lebanese Economy written by Farah Abdul Malek el Bsat and published by . This book was released on 2002 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Currency Substitution and Dollarization in Lebanon written by Mohamad Ahmad Abou Hamia and published by . This book was released on 2007 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Full Dollarization written by Jad Damaj and published by . This book was released on 2001 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dollarization in Lebanon written by Lara-Irma William Barghout and published by . This book was released on 1997 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Lebanon written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2019-10-17 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2019 Article IV Consultation with Lebanon highlights that Lebanon’s economic position continues to be very difficult, with very low growth, high public debt and large twin deficits. While financial stability has been maintained, deposit inflows, critical to finance the budget and external deficits, slowed down during the past year, reducing the authorities’ room for manoeuvre. The new government has taken some important policy steps to start the needed policy adjustment, which could help raise confidence among investors and donors. The highest priority is the implementation of a sustainable fiscal adjustment that will bend down the path of the public debt-to-gross domestic product ratio through a combination of revenue and expenditure measures. This needs to be complemented by structural reforms and concessionally financed investment to raise Lebanon’s growth potential and help external adjustment, as well as policies to build further buffers in Lebanon’s financial sector. Structural reforms should prioritize reforming the electricity sector, removing impediments to and lowering the cost of doing business, as well as improving governance and reducing corruption.
Download or read book The Choice of Monetary Policy Targets and Instruments written by Moon Georges Baz and published by . This book was released on 2008 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Lebanese central bank is targeting the nominal exchange rate since 1992 to a chieve price stability and to control inflation. Some economies have shifted to targeting the inflation rate. This rendered their monetary policy more effective . Whether the Lebanese central bank should target inflation instead of targeting the exchange rate has been a subject of debate among major economists and finan cial advisors. This project examines the current monetary policy implemented in Lebanon and whe ther it should be changed in favor of a better monetary policy regime. In the case of Lebanon, its high dollarization led to a virtual disinflation dur ing the 1990s; however, the results were reversed with time. The Lebanese econom y has witnessed a loss of competitiveness, a large structural deficit, mounting up debt, and hence it became increasingly defenseless against volatility of capi tal flows and adjustments in nominal exchange rate. The first chapter reviews related literature on the monetary policy transmission mechanism. Then, the case of the Lebanese economy is reviewed since the 1990. M oreover, several modern and relevant Lebanese issues are evaluated, such as the increased cost of living, the increased price of oil, and the severe inflation d ue to the depreciation of the dollar. Subsequently, this study empirically explo res the impact of the current appreciation of the Euro on the Lebanese economy a nd the implications of the current peg to the US Dollar on current fundamentals. Finally, this project concludes with recommendations and further research.
Download or read book The Optimal Exchange Rate Regime for Lebanon written by Rima Khalil Nehme and published by . This book was released on 2007 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the increasing frequency and incidence of international financial crises, a nd in light of the volatile economic and political situation in Lebanon and the region, the choice of exchange rate regime has become critical. The study review s the historical economic background of the Lebanese economy from the civil war up to the present time, explaining the context of Lebanese dollarization. It als o explores different aspects of economic models and thoughts pertaining to excha nge rate regimes. The project tackles each of the pros and cons of fixed exchange rates. Lebanon i s a small economy open to international trade, with little public policy credibi lity. Hence, the loss of monetary policy independence will not affect macroecono mic stability. Lost competitiveness due to the fixed exchange rate does not seem to be a critical issue in Lebanon especially that devaluation in developing cou ntries often proved to be disastrous and lead to harsh economic and social retal iations. The paper also examines the possibility of a basket currency peg. While this reg ime might have proven to be a successful transition phase for some countries, it will not necessarily have the same outcome in a country like Lebanon which curr ently satisfies all the criteria for a hard peg. A simple correlation between economic activity in Lebanon and economic activity in the United States and the European Union respectively, indicates that the Leb anese economy is more strongly correlated with the US economy. The choice of the US dollar as the ultimate anchor currency is also corroborated by the stronger correlation between economic growth in Lebanon and the real LBP/dollar exchange rate.
Download or read book Lebanon Weathering the Perfect Storms written by Axel Schimmelpfennig and published by International Monetary Fund. This book was released on 2008 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews Lebanon's ability to manage financial pressures following severe shocks despite its large public debt overhang and significant external vulnerabilities. Based on interviews with market participants in Beirut and London, the paper concludes that Lebanon's ability to weather what appear to be "perfect storms" derives from three characteristics: a perceived implicit guarantee from donors; Lebanon's track record of having never defaulted on external debt or deposits; and the unique market structure for Lebanese debt which is dominated by local banks and "dedicated" investors and depositors.
Download or read book The International Transmission of Monetary Shocks in a Dollarized Economy written by Charbel Cordahi and published by . This book was released on 2010 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that an American monetary shock wields an influence, though limited, over the Lebanese output in accordance with the literature advances. However, as we are waiting for a stronger transmission of U.S. short-term rates to Lebanese short-term rates, we notice that this transmission is weak in the first year. The result can be explained by the presence of pricing-to-market. After the end of the first year, we find the traditional result where the increase in the American interest rate is transmitted integrally to the Lebanese interest rate. We recognize this phenomenon as the dollarization effect.
Download or read book Rethinking the International Monetary System written by Jane Sneddon Little and published by University Press of the Pacific. This book was released on 1999 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to a recent World Bank study, the Asian crisis led to a significant rise in poverty and sharp declines in middle-class living standards in the countries most affected. Real public spending on health and education fell, with poor households experiencing the largest declines in access to these services. The impact of decreased investment in human capital will have consequences for individuals and whole societies for years to come. Because these external shocks occurred very shortly after these countries had liberalized their capital markets, they have engendered a growing distrust of globalization in many parts of the world. We owe it to the people of the developing countries, as well as to ourselves, to consider how institutional or policy changes could moderate such setbacks in the future. For all these reasons, this conference seemed a good time to pause and consider the implications of recent events, institutional changes, and new research for the evolution of the international monetary system. Representing frontline countries and frontline institutions, many of the conference participants had struggled firsthand with the dilemmas posed by the recent crises. Thus, they brought unique perspectives on the issues and offered thoughtful observations and useful ideas that could improve the workings of the international monetary system. It is our hope that this publication of their views will stimulate further discussion, research and, more than partial implementation.
Download or read book Interest Rate Determination in Lebanon written by Mangal Goswami and published by INTERNATIONAL MONETARY FUND. This book was released on 2006-04-01 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper seeks to understand how interest rates are formed in Lebanon, by focusing on the pass-through from benchmark rates, prevailing liquidity conditions, and the main characteristics of the Lebanese economy, notably its open capital account, fixed exchange rate, high government borrowing requirement, large public debt, and high degree of deposit dollarization. We find that international interest rates are an important element in the determination of interest rates in Lebanon. In particular, the pass-through of global benchmark rates to interest rates on sovereign bonds is about 70 percent. The less-than-complete pass-through could be attributed to a home-bias effect reflecting a relatively stable and dedicated investor base. The study also shows that interest rates in Lebanon are affected by liquidity conditions as well as perceived sovereign risk.
Download or read book Evaluation of the Lebanese Pound Under the Prospect of Dollarization Phenomenon written by Lara Abdo and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of the Dollarization phenomenon is not only a local fact, but also an international concern, since it is internationally spread. The interest of this research is to highlight the dollarization phenomenon effects on the Lebanese pound currency system. To accomplish the goal of this study the qualitative method under the cross sectional analysis and the time series analysis was being used after elaborating an empirical approach on both the Lebanese and the U.S currency systems. The results assumed vital points to propose a systematic change in the local currency scheme, considering new perspectives, by which if the development of the local currency failed, the introduction of a unified currency system would be another option to launch a strong currency system against the dollarization not only on the Lebanese leve,1 but also further the Arab countries level.
