A simple theoretical framework for the analysis of liability dollarization

This paper presents a simple model of debt contracts in order to analyze the conditions under which domestic residents would choose to denominate debts in "dollars". In the model, borrowers are producers of non-traded goods, and subject to shocks on prices. The real exchange rate varies in...

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Autores principales: Heymann, Daniel, Kawamura, Enrique
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2004
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3800
http://www.depeco.econo.unlp.edu.ar/jemi/2004/trabajo12.pdf
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id I19-R120-10915-3800
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
economía monetaria
moneda
spellingShingle Ciencias Económicas
economía monetaria
moneda
Heymann, Daniel
Kawamura, Enrique
A simple theoretical framework for the analysis of liability dollarization
topic_facet Ciencias Económicas
economía monetaria
moneda
description This paper presents a simple model of debt contracts in order to analyze the conditions under which domestic residents would choose to denominate debts in "dollars". In the model, borrowers are producers of non-traded goods, and subject to shocks on prices. The real exchange rate varies in response to real shocks. There is a domestic unit of account; prices in terms of that unit can be shocked by a (presumably policy-induced) disturbance. Debt obligations can be denominated in either traded goods (dollarized contracts) or local currency. When real and nominal shocks are possitively correlated, dollarized contracts tend to be preferable to (non-contingent) nominal contracts when nominal shocks are large and real shocks are small.
format Objeto de conferencia
Objeto de conferencia
author Heymann, Daniel
Kawamura, Enrique
author_facet Heymann, Daniel
Kawamura, Enrique
author_sort Heymann, Daniel
title A simple theoretical framework for the analysis of liability dollarization
title_short A simple theoretical framework for the analysis of liability dollarization
title_full A simple theoretical framework for the analysis of liability dollarization
title_fullStr A simple theoretical framework for the analysis of liability dollarization
title_full_unstemmed A simple theoretical framework for the analysis of liability dollarization
title_sort simple theoretical framework for the analysis of liability dollarization
publishDate 2004
url http://sedici.unlp.edu.ar/handle/10915/3800
http://www.depeco.econo.unlp.edu.ar/jemi/2004/trabajo12.pdf
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