Download or read book Network Externalities and Dollarization Hysteresis written by Nienke Oomes and published by International Monetary Fund. This book was released on 2003-05-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dollarization in Russia increased rapidly during the early 1990s, but failed to come down in the second half of the 1990s in spite of exchange rate stabilization. To explain this "dollarization hysteresis," this paper develops a model in which network externalities in the demand for currency can generate multiple stable steady states for the dollarization ratio. The model is estimated using a new source of data on dollar currency holdings in Russia. On the basis of these estimates, which confirm the existence of network externalities, the paper discusses several policies that could result in a permanent decrease in dollarization.
Download or read book Dollarization Hysteresis and the Role of Network Externalities written by Bettina M. Peiers and published by . This book was released on 1995 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dollarization Hysteresis and Network Externalities written by Bettina Peiers and published by . This book was released on 1997 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dollarization Hysteresis and Network Externalities Theory and Evidence from an Informal Bolivian Credit Market written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Reserve Bank of Philadelphia presents the full text of the 1997 working paper entitled "Dollarization Hysteresis and Network Externalities: Theory and Evidence from an Informal Bolivian Credit Market," written by Bettina Peiers and Jeffrey M. Wrase. The text is available in PDF format. This paper examines network externalities from currency acceptability as a determinant of observed persistence of dollarization in Latin American countries and develops a model. The authors find that credible exchange rate stabilization policy alone is not sufficient to achieve dollarization reversal.
Download or read book Deposit Dollarization Dynamics in a Model of Network Externalities and Hysteresis written by Zaid Jamal Albarzinji and published by . This book was released on 2011 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Network Externalities and Aggregate Persistence written by Nienke A. Oomes and published by . This book was released on 2001 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Hysteresis of Currency Substitution written by Neven T. Valev and published by . This book was released on 2007 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is widely documented that currency substitution (using foreign money in transactions) increases in periods of high inflation but does not decline once inflation is reduced. The paper uses survey data from Bulgaria, which experienced this phenomenon, to investigate the origins of this ratchet effect. We find that expected devaluation of the domestic currency, while relatively high, does not play a major role in sustaining the dollarization of transactions. Conversely, preferences for the use of foreign money are strongly influenced by people's perception that foreign money is already widely used in the economy.
Download or read book Currency Substitution and Network Externalities written by Paul Reding and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a known fact that the use of foreign currency by domestic residents shows significance persistence, even hysteresis. Temporary changes in the inflation rate can have permanent effects on the degree of currency substitution, as illustrated by the case of Bolivia, where dollarization has remained at a particularly high level after stabilization. The paper presents a simple model of currency substitution with network effects among agents with heterogeneous transaction costs. A network of foreign currency users reduces transactions costs for all prospective users of this currency. The strength of the network effects increases with size, which is defined as the number of agents whose foreign currency balances are larger than a given threshold. The network's size is endogenously determined. Its dynamics and the possibility of multiple equilibria generate patterns of currency substitution which exhibit persistence and hysteresis.
Download or read book The Dollarization Debate written by Dominick Salvatore and published by Oxford University Press. This book was released on 2003-03-27 with total page 476 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes a global approach, with an emphasis on North and Latin America respectfully, by discussing one of today's most controversial topics in business; Dollarization. With the collapse of the former Soviet Union, and the formation of the Euro in Europe, many countries and debating whether or not a common currency is in their best interest. This intriguing volume brings together the leading participants in the current dollarization debates. Many advocate the notion of a common currency, while others feel that in doing so will create financial costs for all that take part, with the severity varying from country to country.
Download or read book Dollarization and De dollarization in Transitional Economies of Southeast Asia written by Koji Kubo and published by Springer. This book was released on 2017-09-01 with total page 255 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book sheds light on the dollarization trends of four transitional economies in Southeast Asia: Cambodia, Lao PDR, Myanmar, and Vietnam. Moving beyond the tendency to focus on the Latin American experience of dollarization and prolonged high inflation, the chapters in this book compare how payment dollarization has been more persistent than other types of dollarization in this region due to network externalities. The book illustrates that dollarization started in the underdeveloped financial system in these countries and that dollarization interacted with financial development, which is in contrast to dollarization in Latin America. This project extends the frontiers of empirical studies on dollarization. It will be of interest to students, researchers and policy makers concerned with dollarization and economics in Southeast Asia.
Download or read book Divided States written by Scott Nicholas Romaniuk and published by disserta Verlag. This book was released on 2012 with total page 477 pages. Available in PDF, EPUB and Kindle. Book excerpt: Divided States provides a nuanced understanding of some of the most important and impacting issues in EU-Russia relations, and is essential reading for anyone interested in the complex mechanisms that drive political and economic activity in Europe and the European periphery. The original and thought-provoking chapters, by experts in their fields, apply cutting-edge theoretical constructs such as hybridity theory, a hierarchical understanding of monetary relations, and an examination of asymmetric political and economic partnerships, all of which address key questions and challenges in the field of EU-Russia relations. While the specific conclusions expressed are as diverse as the issues analyzed, the findings point to a reality of regression in spite of progression in critical spheres regarding state and non-state actors, dynamics driving mutual exclusion instead of inclusion, and budding skepticism regarding nationalist values, social identities, and ideological sentiments.
Download or read book Nominal Anchors in the CIS written by Mr.Peter Keller and published by International Monetary Fund. This book was released on 2003-09-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary policy has become increasingly important in the countries of the Commonwealth of Independent States (CIS) as fiscal adjustment and structural reforms have taken root. Inflation has been brought down to relatively low levels in almost all of these countries, raising the question of what should be the appropriate nominal anchor at this stage. Formally, almost all CIS countries have floating exchange rate regimes, yet in practice they manage their exchange rates very heavily, perhaps because of high levels of dollarization (i.e., they suffer from "fear of floating"). This paper explores the issues underlying the choice of a nominal anchor in CIS countries and seeks to assess whether the present mixed regime will prove durable.
Download or read book Cambodian Dollarization written by Hidenobu Okuda and published by Taylor & Francis. This book was released on 2023-09-07 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the first study to provide a comprehensive picture of the reality and structure of dollarization in Cambodia, which has been achieving rapid economic and financial development since the end of 1998, when full piece reigned over the kingdom. It uses the micro-level data collected through nationwide surveys conducted jointly by the National Bank of Cambodia and JICA Ogata Sadako Research Institute in 2014 and 2017. By applying econometric analysis to collected data, the book analyses in detail the structures and mechanisms of dollarization in households, companies, and financial institutions. It also provides detailed information on the historical development of Cambodian dollarization, international comparisons with various cases of dollarization in countries around the world, and the impact of NBC's digital payment platforms (particularly Bakong) on the use of local and foeign currencies. The Cambodian case shows that financial development of low- and middle-income countries is promoted mutually by dollarization and that policies to separate the two are necessary to curb dollarization. This book will be of interest to students, researchers and policy-makers concerned with dollarization and economics in Southeast Asia.
Download or read book The Evidence and Impact of Financial Globalization written by and published by Academic Press. This book was released on 2012-12-31 with total page 807 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sharp realities of financial globalization become clear during crises, when winners and losers emerge. Crises usher in short- and long-term changes to the status quo, and everyone agrees that learning from crises is a top priority. The Evidence and Impact of Financial Globalization devotes separate articles to specific crises, the conditions that cause them, and the longstanding arrangements devised to address them. While other books and journal articles treat these subjects in isolation, this volume presents a wide-ranging, consistent, yet varied specificity. Substantial, authoritative, and useful, these articles provide material unavailable elsewhere. - Substantial articles by top scholars sets this volume apart from other information sources - Rapidly developing subjects will interest readers well into the future - Reader demand and lack of competitors underline the high value of these reference works
Download or read book Unravelling The Persistence of Dollarization written by Ia Eradze and published by Taylor & Francis. This book was released on 2023-06-22 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume engages with the roots, dimensions, and implications of foreign currency domination in states with a national currency. Referred to as unofficial dollarization in literature, this is a worldwide phenomenon among developing countries and has a long history. This monograph provides a political economic analysis of dollarization in Georgia and is structured around three themes: the genesis of dollarization (1991–2003), the persistence of dollarization (2003–12) and the politicization of dollarization (2012–19). The case of Georgia is especially representative of the post-socialist transition states, but also has wider applicability. A high level of dollarization is a significant barrier to economic growth, macroeconomic and political stability, functional monetary policy, as well as social welfare. The Covid-19 crisis and the increasing debt of developing countries in foreign currency exacerbate dollarization-related vulnerabilities for these economies. This book will be of interest to postgraduate students in global/comparative political economy, development economics or transition economies, researchers in monetary sovereignty, central banking, exchange rate policies, currency hierarchy, money, financialization, and policy makers in dollarized countries and global institutions.
Download or read book Monetary Unions and Hard Pegs written by George M. von Furstenberg and published by Oxford University Press, USA. This book was released on 2004-03-25 with total page 399 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial services with global reach are becoming ever more important in the conduct and organization of the trade and investment of nations, and currencies that lack international standing lose out in this business. The result of financial development has been destabilizing currency and portfolio substitution -- in favour of international currencies and against local ones.This book analyses formal approaches to overcoming monetary divisions within countries and within integrating regions, focusing on the consequences of monetary union for trade among union members and their financial development and stability. The authors discuss hard pegs such as those attempted by the currency board of Argentina, outright dollarization, such as in Ecuador, and multilateral monetary union, as in Europe, the least reversible form of monetary union and the most powerful elixir offinancial integration and trade.The political classes and central banks in most countries have been reluctant to admit the market- and technology-driven forces of currency consolidation, much less yield to them. International financial institutions too are still in the habit of proffering advice about national monetary and exchange-rate policies on the assumption that getting rid of both is not even an option. Emerging-market countries, in particular, have to choose between retaining what independent monetary means they stillhave -- and can safely use in the presence of widespread liability dollarization and currency mismatches -- and formally replacing the domestic with an international currency to reduce exposure to debilitating financial crises. In concrete investigations of this choice, this volume shows thatmonetary union deserves a much more sympathetic hearing.
Download or read book Dollarization written by Louis-Phillipe Rochon and published by Routledge. This book was released on 2003-05-22 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: The international array of contributors have managed quite a feat - an interesting book that expertly draws comparisons between dollarization and Euroland. This study is a must for anyone interesting in the world of international finance.
