Financial Dollarization and Central Bank Credibility

Financial Dollarization and Central Bank Credibility

Why do firms and banks hold foreign currency denominated liabilities? The authors argue that foreign currency debt, by altering the effect of a devaluation on output, has a disciplining effect when the Central Bank's objectives differ from the...

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Bibliographic Details
Main Authors: Cowan, Kevin, Do, Quy-Toan
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
DOLLAR STANDARD
CENTRAL BANKS
FOREIGN CURRENCY DEPOSIT ACCOUNTS
MONETARY POLICY
INFORMATION ACCOUNTING
ADVERSE EFFECTS
AGGREGATE DEMAND
ARBITRAGE
AVERAGE INFLATION
BALANCE SHEETS
BORROWING
CAPACITY BUILDING
CAPITAL ACCOUNT
CENTRAL BANK
CENTRAL BANK CREDIBILITY
COMPETITIVENESS
DEBT
DEPOSITS
DEVALUATION
DISTORTIONARY EFFECTS
EMERGING ECONOMIES
EMPIRICAL EVIDENCE
EQUILIBRIUM
EQUILIBRIUM ANALYSIS
EXCHANGE RATE
EXCHANGE RATE DEPRECIATION
EXCHANGE RATE POLICIES
EXCHANGE RATE POLICY
EXCHANGE RATE REGIME
EXCHANGE RATE REGIMES
EXCHANGE RATE RISK
EXCHANGE RATES
FINANCIAL CONTRACTS
FINANCIAL DEVELOPMENT
FINANCIAL DOLLARIZATION
FINANCIAL FRAGILITY
FINANCIAL INSTITUTIONS
FOREIGN CURRENCY
FOREIGN CURRENCY DEBT
FUNCTIONAL FORMS
GOVERNMENT DEBT
INCOME
INFLATION
INFORMATION ASYMMETRIES
INSURANCE
INTEREST RATE
INTEREST RATES
LIQUIDITY
MACROECONOMIC IMPLICATIONS
MACROECONOMIC SHOCKS
MACROECONOMIC VARIABLES
MARGINAL BENEFITS
MARGINAL COST
MARGINAL COSTS
MARKET ECONOMIES
MONETARY AUTHORITIES
MONETARY AUTHORITY
MORAL HAZARD
NET WORTH
OPTIMIZATION
PERFECT COMPETITION
PERFECT INFORMATION
POLICY CREDIBILITY
POLICY RESEARCH
PORTFOLIO
PORTFOLIOS
PRIVATE AGENTS
PRODUCTIVITY
PURCHASING POWER
RISK AVERSE
SAVINGS
TAXATION
UTILITY FUNCTION
ACCOUNTING
INFORMATION
Online Access:http://documents.worldbank.org/curated/en/2003/06/2438507/financial-dollarization-central-bank-credibility
http://hdl.handle.net/10986/18170

Internet

http://documents.worldbank.org/curated/en/2003/06/2438507/financial-dollarization-central-bank-credibility
http://hdl.handle.net/10986/18170

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