Systemic Risk, Dollarization, and Interest Rates in Emerging Markets

Systemic Risk, Dollarization, and Interest Rates in Emerging Markets

This study investigates the impact of systemic risks and financial dollarization on real interest rates in emerging economies. Higher systemic risks induce both higher real interest rates and increased dollarization. Using appropriate instruments for the dollarization ratio, the study overcomes the...

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Bibliographic Details
Main Authors: Bacha, Edmar L., Holland, Márcio, Gonçalves, Fernando M.
Format: Journal Article
Published: World Bank 2012
Subjects:
asset management
bonds
contract enforcement
currency
currency mismatches
default risk
emerging economies
emerging markets
exchange rate
interest rate
interest rates
international bank
international market
issuance
levy
macroeconomic risks
market failures
real interest
real interest rate
real interest rates
Online Access:http://hdl.handle.net/10986/4496

Internet

http://hdl.handle.net/10986/4496

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