Regional Inflation, Financial Integration and Dollarization (This is a revision of CentER DP 2013-073)
Ralph De Haas (),
Martin Brown () and
No 2015-012, Discussion Paper from Tilburg University, Center for Economic Research
We exploit variation in consumer price inflation across 71 Russian regions to examine the relationship between the perceived stability of the domestic currency and financial dollarization. Our results show that regions with higher inflation experience an increase in the dollarization of household deposits and a decrease in the dollarization of loans to households and to firms in non-tradable sectors. The impact of inflation on credit dollarization is weaker in regions with less integrated banking markets. This suggests that the currency-portfolio choices of households and firms may be constrained by the asset-liability management of banks.
Keywords: Financial dollarization; Financial Integration; regional inflation (search for similar items in EconPapers)
JEL-codes: E31 E42 E44 F36 G21 G22 G24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-mac, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tiu:tiucen:c29568c0-0139-47e1-b7e2-32e25af462b4
Access Statistics for this paper
More papers in Discussion Paper from Tilburg University, Center for Economic Research
Bibliographic data for series maintained by Richard Broekman ().