Financial dollarization
This paper presents a portfolio model of financial intermediation in which currency choice is determined by hedging decisions on both sides of a bank’s balance sheet. Minimum variance portfolio (MVP) allocations are found to provide a natural benchmark to estimate the scope for dollarization of bank...
Guardado en:
| Autores principales: | , |
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| Formato: | Objeto de conferencia |
| Lenguaje: | Español |
| Publicado: |
2000
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| Materias: | |
| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/33932 http://www.depeco.econo.unlp.edu.ar/jemi/2000/trabajo3.pdf |
| Aporte de: |
| id |
I19-R120-10915-33932 |
|---|---|
| record_format |
dspace |
| institution |
Universidad Nacional de La Plata |
| institution_str |
I-19 |
| repository_str |
R-120 |
| collection |
SEDICI (UNLP) |
| language |
Español |
| topic |
Ciencias Económicas dollarization financial intermediation asset substitution dinero economía monetaria |
| spellingShingle |
Ciencias Económicas dollarization financial intermediation asset substitution dinero economía monetaria Ize, Alain Levy Yeyati, Eduardo Financial dollarization |
| topic_facet |
Ciencias Económicas dollarization financial intermediation asset substitution dinero economía monetaria |
| description |
This paper presents a portfolio model of financial intermediation in which currency choice is determined by hedging decisions on both sides of a bank’s balance sheet. Minimum variance portfolio (MVP) allocations are found to provide a natural benchmark to estimate the scope for dollarization of bank deposits and loans as a function of macroeconomic uncertainty. Dollarization hysteresis is shown to occur when the expected volatility of the inflation rate is high in relation to that of the real exchange rate. The evidence shows that MVP dollarization generally approximates actual dollarization closely for a broad sample of countries. Policy implications are explored. |
| format |
Objeto de conferencia Objeto de conferencia |
| author |
Ize, Alain Levy Yeyati, Eduardo |
| author_facet |
Ize, Alain Levy Yeyati, Eduardo |
| author_sort |
Ize, Alain |
| title |
Financial dollarization |
| title_short |
Financial dollarization |
| title_full |
Financial dollarization |
| title_fullStr |
Financial dollarization |
| title_full_unstemmed |
Financial dollarization |
| title_sort |
financial dollarization |
| publishDate |
2000 |
| url |
http://sedici.unlp.edu.ar/handle/10915/33932 http://www.depeco.econo.unlp.edu.ar/jemi/2000/trabajo3.pdf |
| work_keys_str_mv |
AT izealain financialdollarization AT levyyeyatieduardo financialdollarization |
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Repositorios |
| _version_ |
1764820470689955841 |