Currency Substitution in Developing Countries: An Introduction

Guillermo Calvo and Carlos Vegh

MPRA Paper from University Library of Munich, Germany

Abstract: This paper reviews the main policy and analytical issues related to currency substitution in developing countries. The paper discusses, first, whether currency substitution should be encouraged or not; second, how the presence of currency substitution affects the choice of nominal anchors in inflation stabilization programs; third, the effects of changes in the rate of growth of the money supply on the real exchange rate; fourth, the interaction between inflationary finance and currency substitution; and, finally, issues related to the empirical verification of the currency substitution hypothesis.

Keywords: Currency substitution; dollarization; monetary policy (search for similar items in EconPapers)
JEL-codes: F41 (search for similar items in EconPapers)
Date: 1992-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (151)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/20338/1/MPRA_paper_20338.pdf original version (application/pdf)

Related works:
Working Paper: Currency Substitution in Developing Countries: An Introduction (1992)
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:pra:mprapa:20338

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().