Currency Substitution in Developing Countries
Author | : Mr.Guillermo Calvo |
Publisher | : International Monetary Fund |
Total Pages | : 32 |
Release | : 1992-05-01 |
ISBN-10 | : 9781451845884 |
ISBN-13 | : 145184588X |
Rating | : 4/5 (84 Downloads) |
Download or read book Currency Substitution in Developing Countries written by Mr.Guillermo Calvo and published by International Monetary Fund. This book was released on 1992-05-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the main policy and analytical issues related to currency substitution in developing countries. The paper discusses, first, whether currency substitution should be encouraged or not; second, how the presence of currency substitution affects the choice of nominal anchors in inflation stabilization programs; third, the effects of changes in the rate of growth of the money supply on the real exchange rate; fourth, the interaction between inflationary finance and currency substitution; and, finally, issues related to the empirical verification of the currency substitution hypothesis.