04294oam 22010094 450 991078868950332120230828230358.01-4623-1953-X1-4527-7839-61-283-51901-11-4519-8316-69786613831460(CKB)3360000000444049(EBL)3014431(SSID)ssj0000941488(PQKBManifestationID)11543327(PQKBTitleCode)TC0000941488(PQKBWorkID)10963977(PQKB)10479641(OCoLC)694141079(MiAaPQ)EBC3014431(IMF)WPIEE2006157(EXLCZ)99336000000044404920020129d2006 uf 0engur|n|---|||||txtccrInflation Targeting in Dollarized Economies /Leonardo Leiderman, Rodolfo Maino, Eric ParradoWashington, D.C. :International Monetary Fund,2006.1 online resource (22 p.)IMF Working Papers"June 2006."1-4518-6417-5 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. HOW DOES DOLLARIZATION AFFECT MONETARY POLICY?""; ""III. THE RECENT MONETARY EXPERIENCES OF PERU AND BOLIVIA""; ""IV. MONETARY POLICY TRANSMISSION""; ""V. REACTION FUNCTIONS""; ""VI. CONCLUDING REMARKS""; ""REFERENCES""The shift to inflation targeting has contributed to the relatively low inflation observed in some emerging market economies although, as noted by many economists, the preconditions required for a successful implementation were not in place. The existence of managed exchange rate regimes, a narrow base of domestic nominal financial assets, the lack of market instruments to hedge exchange rate risks, together with fear of floating and dollarization, have been stressed as factors that might weaken the efficacy of monetary policy. By examining various aspects of monetary transmission and policy formulation in two highly dollarized economies (Peru and Bolivia) vis-à-vis two economies with low levels of dollarization (Chile and Colombia), we found that, while dollarization imposes differences in both the transmission capacity of monetary policy and its impact on real and financial sectors, it does not preclude the use of inflation targeting as a policy regime.IMF Working Papers; Working Paper ;No. 2006/157Anti-inflationary policiesDeveloping countriesCurrency substitutionDeveloping countriesMonetary policyDeveloping countriesBanks and BankingimfForeign ExchangeimfInflationimfPrice LevelimfDeflationimfMonetary PolicyimfCurrencyimfForeign exchangeimfMacroeconomicsimfBankingimfExchange ratesimfReal exchange ratesimfInternational reservesimfForeign exchange interventionimfPricesimfForeign exchange reservesimfPeruimfAnti-inflationary policiesCurrency substitutionMonetary policyBanks and BankingForeign ExchangeInflationPrice LevelDeflationMonetary PolicyCurrencyForeign exchangeMacroeconomicsBankingExchange ratesReal exchange ratesInternational reservesForeign exchange interventionPricesForeign exchange reservesLeiderman Leonardo240295Maino Rodolfo1462067Parrado Eric1462066International Monetary Fund.Monetary and Financial Systems Dept.DcWaIMFBOOK9910788689503321Inflation Targeting in Dollarized Economies3823229UNINA