Monetary Policy in Dollarized Economies
By Adam Bennett, Eduardo Borensztein & Tomás J. T. Baliño
- Release Date: 1999-03-15
- Genre: Business & Personal Finance
Description
Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.
