Financial Dollarization of Households and Firms: Does It Differ? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Dollarization of Households and Firms: Does It Differ? write by Mr.Juan S Corrales. This book was released on 2019-01-22. Financial Dollarization of Households and Firms: Does It Differ? available in PDF, EPUB and Kindle. Using a newly complied and extended database from International Financial Statistics, and applying different panel-regression techniques, this paper documents the evolution of households’ and firms’ dollarization over the past decade. We assess the macroeconomic determinants of dollarization for households and firms and explore differences between high and low-income countries. We find that households’ and firms’ dollarization in loans and deposits are weakly explained by the currency substitution model, except in low income countries, where inflation plays a significant role. Instead, market development variables such as financial deepening, access to external debt and FX finance as well as other market considerations are key to explain the dynamics of deposits and loans dollarization, regardless of the level of income.These factors can account for a significant fraction of the dollarization, but using a variance decomposition model, there is evidence that a non-negligible portion has yet to be explained. This suggests that there are key determinants for household and firm dollarization that are not fully captured by traditional macroeconomic explanatory variables.
Financial Dollarization of Households and Firms
Financial Dollarization of Households and Firms - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Dollarization of Households and Firms write by Juan Corrales. This book was released on 2019. Financial Dollarization of Households and Firms available in PDF, EPUB and Kindle. Using a newly complied and extended database from International Financial Statistics, and applying different panel-regression techniques, this paper documents the evolution of households' and firms' dollarization over the past decade. We assess the macroeconomic determinants of dollarization for households and firms and explore differences between high and low-income countries. We find that households' and firms' dollarization in loans and deposits are weakly explained by the currency substitution model, except in low income countries, where inflation plays a significant role. Instead, market development variables such as financial deepening, access to external debt and FX finance as well as other market considerations are key to explain the dynamics of deposits and loans dollarization, regardless of the level of income.These factors can account for a significant fraction of the dollarization, but using a variance decomposition model, there is evidence that a non-negligible portion has yet to be explained. This suggests that there are key determinants for household and firm dollarization that are not fully captured by traditional macroeconomic explanatory variables.
Financial Dollarization of Households and Firms: Does It Differ?
Financial Dollarization of Households and Firms: Does It Differ? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Dollarization of Households and Firms: Does It Differ? write by Mr.Juan S Corrales. This book was released on 2019-01-22. Financial Dollarization of Households and Firms: Does It Differ? available in PDF, EPUB and Kindle. Using a newly complied and extended database from International Financial Statistics, and applying different panel-regression techniques, this paper documents the evolution of households’ and firms’ dollarization over the past decade. We assess the macroeconomic determinants of dollarization for households and firms and explore differences between high and low-income countries. We find that households’ and firms’ dollarization in loans and deposits are weakly explained by the currency substitution model, except in low income countries, where inflation plays a significant role. Instead, market development variables such as financial deepening, access to external debt and FX finance as well as other market considerations are key to explain the dynamics of deposits and loans dollarization, regardless of the level of income.These factors can account for a significant fraction of the dollarization, but using a variance decomposition model, there is evidence that a non-negligible portion has yet to be explained. This suggests that there are key determinants for household and firm dollarization that are not fully captured by traditional macroeconomic explanatory variables.
Dedollarization
Dedollarization - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Dedollarization write by Annamaria Kokenyne. This book was released on 2010-08-01. Dedollarization available in PDF, EPUB and Kindle. This paper provides a summary of the key policies that encourage dedollarization. It focuses on cases in which the authorities’ intention is to gain greater control of monetary policy and draws on the experiences of countries that have successfully dedollarized. Unlike previous work on the subject, this paper examines both macroeconomic stabilization policies and microeconomic measures, such as prudential regulation of the financial system. This study is also the first attempt to make extensive use of the foreign exchange regulation data reported in the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions. The main conclusion is that durable dedollarization depends on a credible disinflation plan and specific microeconomic measures.
The Rise of Digital Money
The Rise of Digital Money - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Rise of Digital Money write by Mr.Tobias Adrian. This book was released on 2019-07-15. The Rise of Digital Money available in PDF, EPUB and Kindle. This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy. The Rise of Digital Money analyses how technology companies are stepping up competition to large banks and credit card companies. Digital forms of money are increasingly in the wallets of consumers as well as in the minds of policymakers. Cash and bank deposits are battling with so-called e-money, electronically stored monetary value denominated in, and pegged to, a currency like the euro or the dollar. This paper identifies the benefits and risks and highlights regulatory issues that are likely to emerge with a broader adoption of stablecoins. The paper also highlights the risks associated with e-money: potential creation of new monopolies; threats to weaker currencies; concerns about consumer protection and financial stability; and the risk of fostering illegal activities, among others.
