A Note on the Natural Rate of Dollarization: Mathematical Approximation of Limits

Christian Pinshi

MPRA Paper from University Library of Munich, Germany

Abstract: This reflection attempts to explain the issue of dollarization in a different and innovative way with new recipes for ideas to understand how dollarization works and slow down its pace. Proceeding by a mathematical reflection of limits, we show that in a period of stability, when the rate of dollarization approaches very closely but is not equal to the total dollarization, all monetary policy interventions limit the rate of dollarization in order to that it does not achieve full dollarization. And when monetary policy interventions aim to de-dollarize the economy, the rate of dollarization becomes equilibrium or natural, so we obtain a natural rate of dollarization

Keywords: Dollarization; Monetary policy (search for similar items in EconPapers)
JEL-codes: C0 E52 F30 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-mac and nep-mon
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