Uruguay: Selected Issues

February 1, 2008

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Format: Chicago

Uruguay: Selected Issues, (USA: International Monetary Fund, 2008) accessed November 21, 2024

Summary

This paper examines the inflation expectations, monetary policy credibility, and dollarization. Country fundamentals have explained variation in sovereign spreads, but external factors play an important role. This paper assesses the role of and prospects for bank-lending from a cyclical and structural perspectives. A model calibrated for Uruguay, a financially dollarized economy, suggests that reserves are nearing optimal prudential levels. The results of a modified Merton framework, applied to the case of the Uruguayan banking system, appear to be promising for countries without equity markets.

Subject: Bank credit, Bank deposits, Banking, Central banks, Exchange rates, Financial sector policy and analysis, Foreign exchange, Inflation, Money, Prices, Reserve positions, Stress testing

Keywords: Bank credit, Bank lending, Bank-lending channel, CR, Credit risk indicator, Deposit dollarization, Exchange rates, Global, Inflation, Inflation expectation, ISCR, Reserve positions, Sovereign spread, Stress testing

Publication Details

Pages:

78
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2008/046
Stock No:

1URYEA2008002
ISBN:

9781451839418
ISSN:

1934-7685

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