Results 261 to 270 of about 106,816 (301)

Portfolio Theory and Currency Substitution

Journal of Money, Credit and Banking, 1985
ONE OF THE MAJOR REASONS Friedman (1953) and Johnson (1972) advocated flexible exchange rates was to eliminate supply side monetary substitutability, which can incapacitate domestic monetary policy. However contributors to the currency substitution literature, including Miles (1978), Girton and Roper (1981), and McKinnon (1982) have argued that when ...
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Currency denominations, currency substitutions, and the price level

Journal of Macroeconomics, 1983
Abstract In a 1976 Journal of Political Economy paper, Chen has shown that gross substitutability is a necessary and sufficient condition for the deletion of a desirable currency denomination to be inflationary. The present note corrects and extends the theory by showing that such deletion is inflationary even if monies are complements.
Chen, Chau-Nan, Tsaur, Tien-Wang
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Currency substitution versus dollarization

Journal of Policy Modeling, 2001
Abstract In this paper, the portfolio balance model of Cuddington [J. Int. Money Finance 2 (1983) 111.] is extended to a developing economy where foreign currency deposits earn a competitive rate of return. The extended and modified model yields demand functions for domestic and foreign money that allows to differentiate currency substitution ...
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Endogenous Currency Substitution, Inflationary Finance, and Welfare [PDF]

Journal of Money, Credit and Banking, 1994
In some countries a foreign currency has replaced the domestic one to perform the functions of money. This phenomenon is known as currency substitution. This paper explores the relationship between currency substitution and inflationary finance in an overlapping generations model in which currency substitution is an endogenous equilibrium outcome.
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Currency substitution and transactions costs

Empirical Economics, 1990
This paper examines currency substitution in Canadian money demand vis-a-vis the U.S. dollar. A variant of the model developed by Bordo and Choudhri (1982) is estimated to test for the presence and extent of this substitution. The modified model is enhanced by the introduction of foreign exchange transactions costs.
Jagdish Handa, I. M. Bana
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Currency Substitution and Network Externalities

SSRN Electronic Journal, 2004
It is a known fact that the use of foreign currency by domestic residents shows significance persistence, even hysteresis. Temporary changes in the inflation rate can have permanent effects on the degree of currency substitution, as illustrated by the case of Bolivia, where dollarization has remained at a particularly high level after stabilization ...
Paul Reding, Juan Antonio Morales
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Currency substitution in Romania [PDF]

, 2003
The aim of this paper is to investigate the currency substitution phenomenon in Romania. We present the evolution of the DI (Dollarization Index) as it is defined by the IMF, the situation on the liabilities side and that of the banking sector. We assess the way in which the traditional functions of money have been affected by currency substitution. In
Lazea, Valentin, Cozmanca, Bogdan Octavian   +1 more
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The hysteresis of currency substitution: Currency risk vs. network externalities

Journal of International Money and Finance, 2007
Abstract It is widely documented that currency substitution (using foreign money in transactions) increases in periods of high inflation but does not decline once inflation is reduced. The paper uses survey data from Bulgaria, which experienced this phenomenon, to investigate the origins of this ratchet effect.
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Currency substitution, inflation, and welfare

Journal of Development Economics, 2012
Abstract Currency substitution affects the mapping between social welfare and inflation by altering the underlying money demand function and influencing interest rates. In order to explore the essence of this effect, I build a model with working capital under which foreign currency is substituted with the less liquid components of domestic money. The
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Currency Substitution: Comment

Southern Economic Journal, 1984
Leroy O. Laney, Chris D. Radcliffe, Thomas D. Willett   +2 more
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