Monetary Policy in Dollarized Economies

By Adam Bennett, Eduardo Borensztein, Tomás J. T. Baliño

March 15, 1999

Preview Citation

Format: Chicago

Adam Bennett, Eduardo Borensztein, and Tomás J. T. Baliño Monetary Policy in Dollarized Economies, (USA: International Monetary Fund, 1999) accessed November 21, 2024

Summary

Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.

Subject: Commercial banks, Currencies, Dollarization, Financial institutions, Monetary base, Monetary policy, Money, Reserve requirements

Keywords: Asset, Asset substitution, Benefits of dollarization, Commercial banks, Currencies, Currency, Dollarization, Dollarized economy, Eastern Europe, FCD, Foreign currency, IMF staff country report, Inflation stabilization, Monetary base, OP, Reserve requirements, Sound financial market environment

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 1999/003
Stock No:

S171EA0000000
ISBN:

9781557757579
ISSN:

0251-6365

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