03307nam 2200649Ia 450 991081559730332120200520144314.01-4623-1953-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(IMF)WPIEE2006157(MiAaPQ)EBC3014431(EXLCZ)99336000000044404920061030d2006 uf 0engur|n|---|||||txtccrInflation targeting in dollarized economies /prepared by prepared by Leonardo Leiderman, Rodolfo Maino, and Eric Parrado1st ed.Washington, D.C. International Monetary Fund, Monetary and Financial Systems Dept.c20061 online resource (22 p.)IMF working paper ;WP/06/157"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 paper ;WP/06/157.Anti-inflationary policiesDeveloping countriesCurrency substitutionDeveloping countriesMonetary policyDeveloping countriesAnti-inflationary policiesCurrency substitutionMonetary policyLeiderman Leonardo1951-240295Maino Rodolfo1961-1623199Parrado Eric1623198International Monetary Fund.Monetary and Financial Systems Dept.MiAaPQMiAaPQMiAaPQBOOK9910815597303321Inflation targeting in dollarized economies4194714UNINA