The Currency Substitution Model of Exchange Rates

Imad A Moosa and Razzaque H Bhatti
Additional contact information
Imad A Moosa: Monash University, Australia
Razzaque H Bhatti: Gulf University for Science and Technology, Kuwait

Chapter 9 in The Theory and Empirics of Exchange Rates, 2009, pp 260-291 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThe following sections are included:IntroductionCurrency Substitution and DollarizationImplications of Currency SubstitutionDeterminants of Currency SubstitutionExchange Rate Determination Under Currency SubstitutionThe Calvo–Rodriguez Overshooting Currency Substitution ModelAssumptions of the ModelThe Asset MarketThe Goods MarketA Diagrammatic Illustration of the Currency Substitution ModelThe Importance of Currency Substitution in a Regional SettingSome Policy and Analytical Issues Related to Currency SubstitutionShould Currency Substitution be Encouraged?Discouraging the Use of Foreign CurrenciesCurrency Substitution and Nominal AnchorsMonetary Expansion and the Real Exchange RateInflationary Finance under Currency SubstitutionRecapitulation

Keywords: Models of Exchange Rate Determination; Balance of Payments; Macroeconomic Approach to Exchange Rates; Microstructure Approach to Exchange Rates; Mundell-Fleming Model; Flexible-Price Monetary Model of Exchange Rates; Portfolio Balance Model; Currency Substitution Model (search for similar items in EconPapers)
JEL-codes: I10 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812839541_0009 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812839541_0009 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789812839541_0009

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().