05760oam 22015374 450 991096991980332120250426110625.0978661382263597814623134951462313493978145276024714527602419781282590458128259045697814519080391451908032(CKB)3360000000443298(EBL)3012585(SSID)ssj0000940804(PQKBManifestationID)11492018(PQKBTitleCode)TC0000940804(PQKBWorkID)10955946(PQKB)11484120(OCoLC)535147017(IMF)WPIEE2006007(MiAaPQ)EBC3012585(IMF)WPIEA2006007WPIEA2006007(EXLCZ)99336000000044329820020129d2006 uf 0engur|n|---|||||txtccrFinancial Dollarization in Latin America /Robert Rennhack, Masahiro Nozaki1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (36 p.)IMF Working PapersDescription based upon print version of record.9781451862676 1451862679 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. TRENDS IN FINANCIAL DOLLARIZATION""; ""III. FINANCIAL DOLLARIZATION AS A RATIONAL RESPONSE TO INFLATION""; ""IV. THE ROLE OF CREDIT RISK""; ""V. CONCLUDING REMARKS""; ""APPENDIX I""; ""APPENDIX II""; ""REFERENCES""This paper tests several explanations for financial dollarization (FD), with an emphasis on Latin America. The results provide evidence that FD is a rational response to inflation uncertainty. The paper builds on previous research by finding that an exchange rate policy biased towards currency depreciation and currency mismatches tends to contribute to high FD and that FD is highly persistent. These results suggest that countries with significant FD should encourage the use of domestic currency by maintaining macroeconomic stability; allowing more exchange rate flexibility and less bias towards currency depreciation; and adapting prudential regulations to ensure that costs associated with FD are fully internalized in financial contracts. At the same time, restoring confidence in the domestic currency may take many years of sound policies.IMF Working Papers; Working Paper ;No. 2006/007Monetary policyLatin AmericaCurrency questionLatin AmericaBank depositsimfBankingimfBanks and BankingimfBanks and bankingimfBanksimfCurrenciesimfCurrencyimfDeflationimfDepository InstitutionsimfDevelopment Planning and Policy: Trade PolicyimfDollarizationimfExchange rate policyimfFactor MovementimfFinancial Institutions and Services: GeneralimfFinancial servicesimfForeign Exchange PolicyimfForeign ExchangeimfForeign exchangeimfGovernment and the Monetary SystemimfInflationimfInvestment DecisionsimfMacroeconomicsimfMicro Finance InstitutionsimfMonetary economicsimfMonetary policyimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMonetary SystemsimfMoney and Monetary PolicyimfMoneyimfMortgagesimfPayment SystemsimfPortfolio ChoiceimfPrice LevelimfPricesimfRegimesimfStandardsimfBrazilimfMonetary policyCurrency questionBank depositsBankingBanks and BankingBanks and bankingBanksCurrenciesCurrencyDeflationDepository InstitutionsDevelopment Planning and Policy: Trade PolicyDollarizationExchange rate policyFactor MovementFinancial Institutions and Services: GeneralFinancial servicesForeign Exchange PolicyForeign ExchangeForeign exchangeGovernment and the Monetary SystemInflationInvestment DecisionsMacroeconomicsMicro Finance InstitutionsMonetary economicsMonetary policyMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMonetary SystemsMoney and Monetary PolicyMoneyMortgagesPayment SystemsPortfolio ChoicePrice LevelPricesRegimesStandardsRennhack Robert1816333Nozaki Masahiro1815787DcWaIMFBOOK9910969919803321Financial Dollarization in Latin America4372954UNINA