This paper shows how uncertainty about liquidity demand can lead to a high degree of dollarization in the banking system. I study a model where the demand for currency in each period is random, and where it is easier for ...

Purpose: This paper analyses the possibility of Latin America's (LA) major economies adopting dollarization, considering that in the last decade macroeconomic instability has once again challenged the ability of certain ...

In this chapter we combine portfolio decisions of individuals and invoicing decisions of firms into a general equilibrium cash-in-advance monetary model to explain the pattern of dollarization across types of goods. This ...

This study investigates the impact of systemic risks and financial dollarization on real interest rates in emerging economies. Higher systemic risks induce both higher real interest rates and increased dollarization. Using ...

We estimate the correlation of foreign bank penetration and dollarization with competition in the banking industry in sixteen Latin American countries during the period 1995–2008. We apply Boone’s methodology to compute ...

las fuertes oscilaciones registradas en la cotización del llamado dólar blue han generado polémica con respecto tanto a los determinantes de las mismas como a cuál debería ser su valor

In this chapter we combine portfolio decisions of individuals and invoicing decisions of firms into a general equilibrium cash-in-advance monetary model to explain the pattern of dollarization across types of goods. This ...

In this chapter we combine portfolio decisions of individuals and invoicing decisions of firms into a general equilibrium cash-in-advance monetary model to explain the pattern of dollarization across types of goods. This ...